A manufacturer produces 1,000 units, regardless of the market price. For this firm, the price elasticity of supply is
a. infinity.
b. zero.
c. one.
d. negative one.
b
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An outward rotation of the production possibilities frontier occurs when
A) traders specialize in and exchange the products of their comparative advantage. B) one trader steals from the other. C) traders produce goods at exactly the same levels of opportunity cost. D) one trader begins to produce both goods at a higher level of opportunity cost compared to the other.
The major drawback of a price ceiling is
a. it causes a surplus. b. government regulations of this kind are difficult to enforce. c. it causes a shortage. d. There is no drawback.
In order to increase the money supply, the banking system must have which of the following?
What will be an ideal response?
When the firm increases output and the costs rise disproportionately faster, then the long-run average cost curve is ________ and the firm is experiencing ________.
A. horizontal; constant returns to scale B. downward sloping; constant returns to scale C. upward sloping; diseconomies of scale D. downward sloping; economies of scale