Suppose the short-run supply curve is a straight line of slope +1 that intersects the origin. The long-run supply curve will be
A) horizontal.
B) steeper.
C) shallower.
D) vertical.
C
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An increase in wealth leads to ________ loanable funds
A) a decrease in the demand for B) an increase in the supply of C) a decrease in the supply of D) an increase in the demand for E) no change in either the supply of loanable funds or the demand for
Say that the equilibrium price of natural gas would be $5 per thousand cubic feet, but there is a price floor imposed at $7 per thousand cubic feet. That price floor is then lowered to $5 per thousand cubic feet. As a result, a. the shortage of natural gas will get worse
b. the shortage of natural gas will get less severe. c. the surplus of natural gas will get worse. d. the surplus of natural gas will be eliminated.
Natural monopolies are most likely to arise when firms have:
A. low start-up costs and low marginal costs. B. high start-up costs and high marginal costs. C. low start-up costs and high marginal costs. D. high start-up costs and low marginal costs.
Growth accounting refers to the method used to:
A. identify the contribution of economic growth from increased capital, labor, and technological progress. B. identify the costs of promises made by the government today but paid for by future generations. C. measure the growth in the labor force. D. measure growth in the capital stock.