Suppose there are two perfectly competitive industries with similar numbers of firms but where one industry consists of N identical firms while the second consists of N firms with differing costs
Compared to the short-run supply curve of the industry with identical firms, the short-run supply curve of the differing cost industry will tend to be A) steeper at higher prices.
B) flatter at higher prices.
C) steeper at lower prices.
D) flatter at lower prices.
C
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In the market for jeans, which of the following events increases the de-mand for a pair of jeans?
A. The wage rate paid to garment workers rises. B. The price of a denim skirt (a substitute for jeans) rises. C. The price of denim cloth falls. D. New technology reduces the time it takes to make a pair of jeans.
When the top marginal tax rates were lowered substantially during the 1980s, the inflation-adjusted income tax revenue collected from the top 1 percent of all income earners
a. declined sharply. b. remained approximately constant. c. increased substantially. d. did none of the above.
If the nominal exchange rate were to be expressed as the number of units of domestic currency per unit of foreign currency, and that rate decreases, then the domestic currency has:
A. appreciated. B. depreciated. C. become undervalued. D. become overvalued.
Assuming a perfectly competitive market implies that households do not need knowledge of qualities and prices of everything available in the market.
Answer the following statement true (T) or false (F)