A consumer's budget line will shift to the right in a parallel manner if:
a. the price of the good on the X-axis decreases.
b. the price of the good on the Y-axis increases.
c. the consumer's income increases
d. the consumer's income decreases.
c
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Typically a firm's economic profit will be
A) greater than its accounting profit. B) less than its accounting profit. C) equal to its accounting profit. D) equal to its accounting profit minus its tax liability. E) equal to its accounting profit plus the market value of any unsold inventory.
The quantity demanded for a good
A) must equal the quantity actually sold. B) can be less than the quantity actually sold. C) can be greater than the quantity actually sold. D) is always greater than the quantity actually sold.
In autumn, the Connecticut apple market is perfectly competitive. If market demand increases—resulting, say, from a change in consumer taste—the demand curves faced by each individual firm will, in the long run
a. become vertical b. become less elastic c. remain unchanged d. shift leftward e. shift downward
If a firm stops production, then its:
A. total costs may increase or decrease. B. variable costs drop to zero. C. fixed costs rise. D. All of these are true.