The demand curve facing a perfectly competitive firm is:
a. downward sloping.
b. upward sloping.
c. vertical.
d. horizontal.
d
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Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares
A) the total revenue from sales of printers to the total cost of producing all the printers. B) the extra revenue from selling a few additional printers to the extra costs of producing the printers. C) the extra revenue from selling a few additional printers to the average cost of producing the additional printers. D) HP's printers to printers from competing companies, such as Lexmark.
A positive "price surprise" will result in a
A) leftward shift in the short-run SAS curve. B) leftward shift in the short-run AD curve. C) rightward shift in the short-run AD curve. D) rightward shift in the short-run SAS curve.
A firm in a competitive industry faces the following short-run cost and revenue conditions: ATC = $16; AVC = $8; and MR = MC = $12. This firm should
A) expand production and keep price constant. B) decrease production and raise its price. C) shut down. D) continue to operate at the same price and output level in the short run.
When the Census Bureau counts the number of poor Americans, it counts
A. Only money income. B. Personal income plus transfer payments. C. Only in-kind income. D. Both in-kind and money income.