When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, resulting in
a. excess demand or shortages.
b. excess supply or surpluses.
c. equilibrium prices.
d. price controls.
b. excess supply or surpluses.
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Providing a constant number of workers with additional capital with which to work will ________ labor productivity at a(n) ________ rate.
A. increase; increasing B. decrease; decreasing C. increase; decreasing D. increase; constant
Consider a short-run equilibrium in a perfectly competitive market. Suppose that the firms' average total cost and marginal cost schedules differ. In the short run,
A) all firms in the market must be able to make an economic profit. B) all firms produce equal amounts of output. C) some firms might incur an economic loss, but still produce output. D) some firms might make an economic profit and, as a result, shut down. E) all firms in the market must be able to make either positive or zero economic profit.
Fill in the blank: Firms under perfect competition would enjoy ________ market power
A) absolutely no B) some C) much D) total
A decrease in the price of pork will result in
A) a smaller quantity of pork supplied. B) a decrease in the demand for pork. C) a larger quantity of pork supplied. D) an increase in the supply of pork.