Assume the short-run average total cost for a perfectly competitive industry remains constant as the output of the industry expands. In the long run, the industry supply curve will:
a. have a positive slope.
b. have a negative slope.
c. be perfectly horizontal.
d. be perfectly vertical.
c
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If both firms plan to be in business for 5 years, then the Nash Equilibrium will be
a. For each firm charge a LP every year b. For neither firm to charge a LP in early years, but to charge a HP in later years. c. For each firm to charge a HP every year d. For neither firm to charge a HP in early years, but to charge a LP in later years.
If Japan has an absolute advantage over the United States in making TVs, then Japan:
A. probably sells TVs to the United States. B. produces more TVs than the United States using the same resources. C. has the ability to produce TVs at a lower opportunity cost than the United States. D. it will have no reason to trade with the US.
At the utility maximizing level, the ratio of the marginal utility of pizzas to that of sandwiches is 3:4 . If the price of a pizza is $3, then the price of a sandwich is _____
a. $6 b. $4 c. $9 d. $8
Like the human body, an economy is made up of many small, specialized, interactive parts; like blood circulates in a human body, money circulates through an economy, providing necessary resources for both households and firms
Indicate whether the statement is true or false