What is a perfectly competitive firm's short-run supply curve?
What will be an ideal response?
A perfectly competitive firm's short-run supply curve is its marginal cost curve above the minimum average variable cost.
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When producers are hard to monitor and marginal costs differ across producers, ________ are an effective method to achieve efficient use of a ________
A) individual transferable quotas; public good B) marginal private benefits; public good C) individual transferable quotas; common resource D) individual transferable quotas; excludable good
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and current international transactions become more positive (or less negative). b. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). c. The real risk-free interest rate falls, and current international transactions remain the same. d. The real risk-free interest rate rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The term "creative destruction" refers to
A. the effects of population growth on the environment. B. the process by which immigrants build a new life in their country of destination. C. the process by which new jobs are created and old ones destroyed. D. All of these are correct.
The income and substitution effects are part of the reason why
A. the demand curve is downward-sloping. B. the supply curve is upward-sloping. C. the demand curve is upward-sloping. D. the supply curve is downward-sloping.