Refer to the above figure for the individual firm in a perfectly competitive market. If the firm's average costs are given by AC3, then
A. the industry supply curve will shift rightward.
B. the industry demand curve will shift rightward.
C. the industry supply curve will shift leftward.
D. none of these.
Answer: C
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In a goods market, sellers have higher bargaining power if:
A) the good being traded has close substitutes. B) there are several firms in the industry. C) there are just a few firms in the industry. D) there are just a few buyers in the market.
Gdp:
a. is the dollar value of all the final goods and services produced within the borders of a nation. b. includes intermediate and final goods and services. c. minus an allowance for depreciation of fixed capital equals GNP. d. is a less-than-perfect measure of social well-being because it does not include exports and imports. e. all of these.
Sunk costs are irrelevant for decisions about future actions because ______.
a. the money has been spent and cannot be recovered to use again b. the money has not been spent yet, so the amount is not known c. they only affect a firm in the short run, not the long run d. they may or may not be applicable under future conditions
Suppose Qxd = 10,000 ? 2 Px + 3 Py ? 4.5M, where Px = $100, Py = $50, and M = $2,000. What is the own price elasticity of demand?
A. ?1.21 B. ?0.21 C. ?0.78 D. ?2.34