Suppose that in a perfectly competitive market, the market supply of a good increases. As a result, the individual firm's:
a. supply curve would shift outward and the firm would increase output.
b. supply curve would shift inward and the firm would decrease output.
c. average-total-cost curve would shift upward and the firm would increase output.
d. marginal-revenue curve would shift upward and the firm would increase output.
e. marginal-revenue curve would shift downward and the firm would decrease output.
e
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In 2009, Germany's capital account was -$135 million. This implies that
A) Germany invested more in other countries than those countries invested in Germany. B) Germany's currency must have appreciated during 2009. C) Germany imported more goods from its trading partners than it exported. D) Germany's official settlements account in 2009 must have been positive.
Which of the following best explains why airlines often cut their ticket prices at the last-minute in order to fill the remaining empty seats on their flights?
A) The Federal Aviation Administration ranks each airline based on the percentage of flights that are fully booked. These rankings affect the decisions of firms to use a particular airline to fly their employees to business meetings. B) Fixed costs in the airline industry are very large, but the marginal cost of flying one more passenger is very low. C) Airlines receive a subsidy from the government for each flight that is fully booked and departs on time. D) Cutting prices makes the airlines more popular with their customers, who may fly with the same airline in the future as the result of buying low-price tickets.
Unemployment that results from the seasonal pattern of work in specific industries is
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.
The supply of product X is elastic if the price of X rises by:
A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied remains the same. D. 7 percent and quantity supplied rises by 5 percent.