Which of the following is true for a lower price elasticity of demand coefficient?
a. The market is broadly defined.
b. The quantity demanded is more responsive.
c. Few substitutes exist.
d. Many substitutes exist.
e. All of these.
c
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The long run is a time frame in which
A) the quantities of some factors of production are fixed and the quantities of other factors of production can be varied. B) the quantities of all factors of production can be varied. C) the quantities of all factors of production are fixed. D) all costs are sunk costs.
What leads to a decrease in the quantity supplied of a good or service?
What will be an ideal response?
A perfectly competitive apple farm produces 1,000 bushels of apples at a total cost of $36,000. The price of each bushel is $50. Calculate the firm's short-run profit or loss
A) profit of $50,000 B) loss of $14,000 C) profit of $14,000 D) There is insufficient information to answer the question.
Use the following two statements to answer this question:
I. A growing firm's average cost of production will decline over time if output continually expands and economies of scale are present. II. A firm's average cost of production can decline over time if learning occurs as cumulative output increases. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.