The supply curve of a price-taker firm in the short run is the:
a. firm's average variable cost curve.
b. portion of the firm's average total cost curve that lies above average variable cost curve.
c. portion of the firm's marginal cost curve that lies above average variable cost curve.
d. firm's marginal revenue curve.
c
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An autonomous increase in net exports for any given inflation rate ________
A) would add directly to planned expenditures B) would raise the equilibrium level of output C) causes the aggregate demand curve to shift to the right D) all of the above E) none of the above
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. Bev can produce three bags an hour, regardless of the size of bag. Which of the following would be considered a fixed cost of this company?
A. The rent Bev pays B. The fabric C. The sewing thread D. None of these would be considered a fixed cost.
If the price of a good increases, all else equal, consumers perceive
a. an increase in purchasing power if the good is an inferior good. b. an increase in income if the price increase occurs for a normal good. c. a decrease in purchasing power. d. a net gain in purchasing power if they decrease consumption of some goods.
All of the following statements are true except
A. an income tax taxes savings twice only if consumption is the measure used to gauge a person's ability to pay. B. at this time, there is not clear consensus on what the best tax base is. C. proponents of income as a tax base argue that you should be taxed on what you draw out of the common pot instead of on the basis of your ability to draw from the pot. D. the double taxation of saving tends to reduce the saving rate.