A decrease in the cost of production will shift the supply curve down and to the right
Indicate whether the statement is true or false
TRUE
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Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived, he discovered that hamburgers were on sale for $1 each, so Steve bought two hamburgers and a soda. Steve's response to the decrease in the price of hamburgers is best explained by
A. the price effect. B. a rightward shift in the demand curve for hamburgers. C. the substitution effect. D. the income effect.
An airline is considering adding a flight from Chicago to Sioux Falls. Revenue from the flight is expected to be $3,000. The total cost of the flight is $5,500, and the variable cost is $2,000. Should the airline add this flight?
A. No, the revenue ($3,000) is below the cost ($5,500). B. No, the addition to profit is very small and not worth the effort. C. Yes, profit increases by $1,000 ($3,000 ? $2,000). D. Yes, profit increases by $3,000.
The process of entry and exit into a monopolistically competitive market causes:
A. the firm's demand curve to shift left and/or right. B. the firm's supply curve to shift left and/or right. C. the firm's average total cost curve to shift left and/or right. D. the firm's marginal cost curve to shift straight up and/or down.
A job in sales-such as a sales representative for an agricultural chemical company-usually represents
A. many tasks and little sales authority. B. many tasks and a lot of sales authority. C. few tasks and very little sales authority. D. few tasks and a lot of sales authority.