In an increasing-cost industry, the entry of new firms
a. decreases equilibrium price
b. increases average cost at each level of output
c. shifts the industry demand curve to the left
d. increases economic profits in the industry
e. shifts the long-run industry supply curve to the right
B
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Jennifer buys a piece of costume jewelry for $33 for which she was willing to pay $42. The minimum acceptable price to the seller, Nathan, was $30. Jennifer experiences
A. a producer surplus of $9 and Nathan experiences a consumer surplus of $3. B. a producer surplus of $9 and Nathan experiences a producer surplus of $12. C. a consumer surplus of $9 and Nathan experiences a producer surplus of $3. D. a consumer surplus of $12 and Nathan experiences a producer surplus of $3.
Someone who values a lottery at less than the expected value is
a. a risk lover b. risk neutral c. risk averse d. one who tends to play lots of lotteries
One of the determinants of real GDP is output per hour of labor. This statistic is called labor
a. force growth. b. productivity. c. force participation. d. force input.
The rationing mechanisms that develop under binding price floors are usually efficient
a. True b. False Indicate whether the statement is true or false