If firms monopolistically competitive firms are making an economic profit, as new firms enter the market, each of the existing firms' demand curve shifts ________, the marginal curve shifts ________, and the profit-maximizing quantity ________
A) leftward; leftward; decreases
B) rightward; leftward; increases
C) leftward; rightward; decreases
D) leftward; leftward; increases
A
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If production involves constant opportunity cost, the production possibilities curve
a. is "bowed inward." b. is a straight line. c. is "bowed outward." d. is a wavy line. e. has an unpredictable shape.
The law of diminishing marginal returns states:
a) As a firm uses more of a variable factor of production, with a given quantity of the fixed factor of production, the marginal product of the variable factor eventually diminishes. b) As a firm uses more of a variable factor or production, total product eventually decreases. c) As the size of a firm?s plant increases, average cost eventually decreases. d) As the size of a plant increases, marginal product eventually decreases. e) As a firm uses more of a variable factor of production, its average cost eventually decreases.
If a price ceiling is set below the equilibrium price in a market:
A. Rationing will be unnecessary B. Surpluses of the commodity will develop C. The quantity demanded will exceed the quantity supplied D. The quantity supplied will exceed the quantity demanded
A consumer was at an optimum. She then discovers that the marginal utility per dollar spent on food is more than the marginal utility per dollar spent on movies. She knows then that
A) the price of movies must have decreased. B) the price of food must have increased. C) the price of movies must have increased or the price of food must have decreased. D) the price of movies must have decreased or the price of food must have increased.