If there is a decrease in industry supply while the industry demand curve remains the same, then an individual firm in a perfectly competitive industry currently earning profits will see its profits
A. not change.
B. decrease.
C. increase.
D. impossible to determine.
Answer: C
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What is the unemployment rate if there are 170 million people employed, 25 million people unemployed, and 35 million not in the labor force?
A) 14.7% B) 13.7% C) 12.8% D) 10.9%
If the price index is 100 this year, then:
a. there has been no inflation during the year b. the price level is thrice as it was in the base year. c. the price level is one hundred times what it was in the base year. d. the price level is double what it was in the base year. e. the inflation rate has been 100 percent since the base year.
Which of the following would not increase autonomous consumption spending?
a. Expectations of greater future income b. A lower interest rate c. Reduced consumer debt d. Increased household wealth e. Increased disposable income
During the Great Recession, the growth rate of Real GDP _________________ and the inflation rate ___________________
A) increased; declined B) declined; increased C) declined; also declined D) increased; also increased