A firm's short-run supply curve is the same as _____ if it produces the good
A. its marginal revenue curve
B. the upward-sloping part of its marginal cost curve
C. its marginal cost curve above minimum average variable cost
D. its marginal cost curve above minimum average total cost
C Figure 11.5 in the text illustrates that answer C is correct.
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Suppose that in each of four successive years producers sell more of their product and at lower prices. This could be explained
A. by small annual increases in demand. B. as an exception to the law of supply. C. in terms of a stable supply curve and increasing demand. D. in terms of a stable demand curve and increasing supply.
Refer to Table 14-9. In order to maximize profit, the firm will produce a level of output where marginal cost is equal to
a. $6. b. $7. c. $8. d. $9.
What does the U.S. business cycle experience suggest about periods of war?
A) the economy tends to boom during the period of war B) after the war is over, the economy typically experiences a downturn C) they are associated with good economic times D) all of the above E) none of the above
If the firm operated at optimum efficiency, how much would its output be?
