Three hundred firms supply the market for paint. For fifty of the firms, their short-run average variable costs are minimized at $10 and short-run total costs are minimized at $15
For the remaining firms, the short-run average variable costs and short-run average total costs are minimized at $20 and $25, respectively. If each firm has a U-shaped marginal cost curve then the short-run market supply curve is A) U-shaped too
B) kinked at $10
C) kinked at $15
D) kinked at $20
E) kinked at $25
D
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If the ratio of net worth to vault cash is .2, the prime rate is .05, and the required reserve ratio is .25, the demand deposit expansion multiplier is
A) 2. B) 4. C) 5. D) .25.
Which of the following fiscal policy actions would definitely cause a reduction in the size of an inflationary gap?
A) cuts in taxes and increases in government spending B) increases in government spending C) increases in taxes D) cuts in taxes
A monopolist will be able to earn positive pure economic profits regardless of the price elasticity of demand
a. True b. False Indicate whether the statement is true or false
Tariffs
a. benefit consumers by lowering prices b. harm producers by decreasing competition in the product market c. harm consumers by increasing the quantity of goods available d. skew the terms of trade in favor of importing nations e. benefit domestic producers because they can charge higher prices and sell more output