If the price of an input decreases, each individual firm's ________ shifts downward and the ________ shifts to the right.
A. demand curve; industry supply curve
B. marginal cost curve; industry supply curve
C. marginal revenue curve; marginal cost curve
D. supply curve; marginal cost curve
Answer: B
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If total output is calculated by adding up the market value of goods and services produced, then more expensive items:
A. receive a greater weight than cheaper items. B. receive the same weight as cheaper items. C. receive a smaller weight than cheaper items. D. are double counted.
A continuing, long-term, large decline in the demand for coffee will not cause the price of coffee to fall much over the years if
A) coffee is not scarce. B) the demand for coffee is highly elastic. C) the demand for coffee is highly inelastic. D) the supply of coffee is highly elastic. E) the supply of coffee is highly inelastic.
Employees at La Dola Inc often engaged in hasty decision making that resulted in losses for the company. Because employees were not individually accountable for their decisions, this trend continued
However, when the company introduced a policy of profit-sharing with its employees, they began scrutinizing their decisions carefully before implementing. Explain the reason behind the change in the employees' behavior.
In arriving at the quantity of output and price of its product, a company
A. chooses either output or price, and consumer demand determines the other. B. has no control over either quantity or price. C. makes two decisions by setting both optimal output and optimal price. D. generally leaves both quantity and price decisions to consumers.