The above figure shows the long-run cost curves for a typical firm in a competitive market. If the number of firms is unrestricted and input costs are constant, derive the long-run market supply curve
What will be an ideal response?
The long-run market supply curve is horizontal at a price of $10 per unit.
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If an industry is made up of five identical-sized firms, the four-firm concentration ratio is
A) 5%. B) 20%. C) 80%. D) 100%.
Suppose output is $35 billion, government purchases are $10 billion, consumption is $15 billion, and net exports are $4 billion. Assume net factor payments equal 0.(a)Calculate the equilibrium amount of investment. Show your work.(b)Calculate the equilibrium amount of absorption. Show your work.(c)Calculate the equilibrium amount of the financial account balance. Show your work.
What will be an ideal response?
When there is a negative externality, the marginal private cost of production ________ the marginal social cost of production
A) eliminates B) is less than C) is equal to D) is greater than
In order to study how changing price affects consumer decisions, we must assume all other factors, such as income and the prices of other goods are constant. This assumption is best know as
A) rationality. B) ceteris paribus. C) normative economics. D) behavioral economics.