When the price of a perfectly competitive firm's output rises:
A. the firm's marginal cost curve will shift to the left.
B. the firm will produce more.
C. the firm will produce less.
D. the firm's marginal cost curve will shift to the right.
Answer: B
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Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's theorem, one necessary condition to alleviate the externality is that
A) Al is fined by the government. B) Al has the right to leave trash and Bert cannot do anything about it. C) Bert has the right to a clean park and Al cannot leave trash. D) Either Al or Bert owns the park.
The most important automatic stabilizer is: a. open market operations
b. the unemployment compensation system. c. the tax system. d. the welfare system.
Workforce quality arguments are very difficult to prove for the period of 1970–1990 because during that period SAT scores
A. and graduation rates increased. B. increased and graduation rates decreased. C. and school attendance rates decreased. D. decreased and school attendance rates increased.
One of the distinguishing characteristics of capital mobility today is that
A) there are far more kinds of financial instruments than there were 100 years ago. B) nations are no longer dependent on their own national savings for their investment funds. C) the bulk of foreign capital flows are tied to labor flows. D) currency markets play a less significant role than they did in the past.