The short-run individual firm's supply curve is made up of the zero-profit equilibrium levels of output as the industry expands due to entry.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Low-income countries are largely responsible for excess carbon dioxide emissions globally
Indicate whether the statement is true or false
Refer to the table below. Suppose the perfectly competitive market for dairy products had a 40 percent chance of a high price of $3.00 and a 60 percent chance of a low price of $2.00. However, both Happy Cows and Free Cows have revised their probabilities and now believe that the probability of a high price of $3.00 is 80 percent and the probability of a low price of $2.00 is 20 percent. If the
managers of Free Cows want to maximize expected profit based on the new probabilities by how much will they change the quantity produced?
Happy Cows and Free Cows are two separate perfectly competitive dairy farms. The table above shows the respective firms' marginal cost at various production levels.
A) Free Cows will increase their production by 40 units.
B) Free Cows will decrease their production by 40 units
C) Free Cows will decrease their production by 20 units.
D) Free Cows will increase their production by 20 units.
An industrial union can obtain a wage higher than the competitive level
a. without any change in total employment b. at the cost of a reduction in total employment c. and achieve higher total employment as well d. and achieve the same or higher total employment e. thus increasing the quantity of labor demanded
Which of the following would be inconsistent with the More-Is-Better Principle?
A. Indifference curves with negative slopes B. Indifference curves that cross C. Indifference curves that are L-shaped D. Indifference curves that are parallel to one another