The supply curve of a good is highly elastic when
A) additional resources can be attracted into its production by the prospect of a slightly higher reward.
B) its marginal supply cost is highly sensitive to changes in demand.
C) marginal cost is very low.
D) marginal cost rises steeply as the quantity supplied increases.
E) the demand for the good is greater than the supply.
A
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In the long run, under conditions of perfect competition, market forces come into play to
a. enhance profits. b. increase demand. c. eliminate profits. d. separate MR and AR.
The decrease in the quantity of labor supplied due to the greater demand for leisure caused by a higher income is called the:
A. income effect. B. price effect. C. substitution effect. D. labor effect.
From the standpoint of economic efficiency, markets tend to provide
a. less of a public good than would be efficient. b. more of a public good than would be efficient. c. exactly the amount of a public good that is efficient. d. none of the above.
What types of risk can firms mitigate using futures contracts?
A. Price Risk B. Price spread risk C. Production risk D. A and B