The above figure shows the reaction functions for two pizza shops in a small isolated town. The perfect competitive outcome is that
A) each firm produces 40 pizzas.
B) each firm produces 50 pizzas.
C) the firms split the production of 200 pizzas.
D) each firm produces 200 pizzas.
C
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All else being equal, if the law of supply states that as the price of a good, service, or resource rises
A. the quantity supplied will decrease, which explains the shape of the supply curve. B. the quantity demanded will decrease, which explains the shape of the supply curve. C. the quantity supplied will increase, which explains the shape of the supply curve. D. the quantity demanded will increase, which explains the shape of the supply curve.
The nation's production possibilities frontier is bowed outward. Suppose that the government decides to increase the production of armaments by $20 billion, and that as a result the output of consumer goods falls by $20 billion
If a further $20 billion increase beyond the initial $20 billion increase in armaments output is sought, we can expect that the output of consumer goods and services will fall further by A) less than $20 billion. B) $20 billion. C) more than $20 billion. D) There is not enough information to determine the answer.
In the 18th century, Southern tobacco planters found that the use of ____________ was economical once the plantation reached a certain size
a. horses b. a plantation manager c. indentured servants d. an iron plow
Refer to the above graph. It shows the cost curves for a competitive firm. At output level 20, the marginal cost is:
A. $0.90. B. $1.05. C. $1.20. D. $0.60.