Suppose that 100 firms operate in a perfectly competitive industry and each firm has the same technology and cost structure. If each firm maximizes profits by selling 20 units of output at $5.00, then the quantity supplied in the market at $5.00 is:
A. 2,000.
B. less than 2,000.
C. greater than 2,000.
D. zero.
Answer: A
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Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080What is the minimum a sweater would be traded for in this example?
A. 1/3 of a scarf B. 1/2 of a scarf C. 3 scarves D. 2 scarves
Other things equal, assume consumer demand for children's toys increases. The result is a(n):
a. rightward shift in the market demand for labor curve in the toy industry. b. increase in the marginal revenue product of firms in the toy industry. c. increase in derived demand for workers in the toy industry. d. all of these.
When the federal budget is used as a tool for economic stabilization, the ideal goal is to
a. balance the budget over the entire business cycle. b. balance the budget each year. c. balance the budget during expansions. d. run a surplus during contractions.
Which of the following would cause the poverty threshold income level for a given family to increase by 20 percent from one year to another?
a. a 20 percent increase in the family's income b. a 20 percent decrease in the family's income c. a 20 percent increase in the general level of prices d. a 20 percent increase in real national income