If price exceeds average costs under pure competition, ____ firms will enter the industry, supply will ____, and price will be driven ____
a. more; decrease; down
b. more; decrease; up
c. more; increase; down
d. more; increase; up
e. none of the above
c
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Suppose an increase in supply lowers the price from $10 to $8 and increases the quantity demanded from 100 units to 130 units. Using the midpoint method, the elasticity of demand equals
A) 1.17. B) 0.85. C) 0.26. D) 1.56. E) None of the above answers is correct.
Starting a fishing business
a. is safe because the price of fish is stable b. requires little prior knowledge c. involves no significant entry costs d. is a risky way to make a living e. does not involve opportunity costs
The principle tool the Fed uses to keep the federal funds rate close to the target is:
A. open market operations. B. the required reserve rate. C. the IOER rate. D. discount lending.
The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500The price elasticity of supply (based on the midpoint formula) when price increases from $15 to $20 is
A. perfectly elastic. B. unit elastic. C. inelastic. D. elastic.