A straight-line production possibilities curve
a. reflects increasing production costs
b. occurs when opportunity costs are constant
c. is impossible
d. exists only when one good is produced
e. is positively sloped
B
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If firms in a competitive market have different cost functions, then
A) there is no short run market supply curve. B) the market supply curve reflects those firms' operating envelopes, even in the short run. C) some of the firms will shut down because their costs are too high to compete. D) the firms' marginal costs will be different at the market price.
For a given decrease in demand, the effect on price is smallest and the effect on quantity exchanged largest when: a. supply is perfectly elastic
b. supply is elastic. c. supply is unit elastic. d. supply is perfectly inelastic.
The theory of economic rent can be used to explain high incomes received by movie stars and athletes
a. True b. False Indicate whether the statement is true or false
According to the Phillips curve, unemployment and inflation are negatively related in
a. the short run and in the long run. b. the short run, but not in the long run. c. the long run, but not in the short run. d. neither the long run nor the short run.