When the price rises and the supply curve does not shift, the firms' producer surplus ________. When the price falls and the supply curve does not shift, the firms' producer surplus ________
A) increases; decreases
B) decreases; increases
C) decreases; decreases
D) increases; increases
E) does not change; does not change
A
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In Figure 11.1, an increase in the marginal propensity to save is represented by a change in the consumption function from
A) C1 to C3. B) C3 to C1. C) C2 to C1. D) C1 to C2.
Which of the following is closest to a perfectly competitive market?
A) the computer software market B) the market for handmade guitars C) the market for broccoli D) the market for athletic shoes
Venture capital funds involve very low risk.
Answer the following statement true (T) or false (F)
The short-run industry supply curve for a perfectly competitive industry is the
A. horizontal sum of the individual firms' marginal cost curves above ATC. B. vertical sum of the individual firms' marginal cost curves above ATC. C. horizontal sum of the individual firms' marginal cost curves above AVC. D. vertical sum of the individual firms' marginal cost curves above AVC.