In a perfectly competitive market, the long-run industry supply curve is perfectly elastic at the minimum point of the ATC curve
a. True
b. False
Indicate whether the statement is true or false
True
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If a small percentage change in the price brings a very large percentage change in the quantity supplied, then the supply is almost perfectly ________ and the supply curve is almost ________
A) elastic; vertical B) elastic; horizontal C) inelastic; horizontal D) inelastic; vertical E) elastic; 45 degrees
If two goods have a cross elasticity of demand of -2, then when the price of one good increases, the demand curve of the other good
A) shifts rightward. B) shifts leftward. C) remains unchanged and the supply curve also remains unchanged. D) might shift rightward, leftward, or remain unchanged. E) remains unchanged but the supply curve shifts leftward.
Producers tend to be better represented in lobbying efforts and other elements of the political process than consumers because
a. producers are generally more intelligent and, therefore, better informed. b. producers are generally better organized than consumers. c. producers are better educated than consumers. d. the number of producers affected by the outcome of a particular political issue is usually greater than the number of consumers affected.
The prisoners' dilemma is an important game to study because
a. most games present zero-sum alternatives. b. it identifies the fundamental difficulty in maintaining cooperative agreements. c. strategic decisions faced by prisoners are identical to those faced by firms engaged in competitive agreements. d. all interactions among firms are represented by this game.