As existing firms exit an increasing-cost industry
A. the position of the LRAC curve doesn't change, but firms move up their LRAC curve.
B. the LRAC curve shifts down.
C. the position of the LRAC curve doesn't change, but firms move down their LRAC curve.
D. the LRAC curve shifts up.
Answer: B
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Cost-push inflation is caused by: a. an increase in aggregate demand
b. a decrease in aggregate demand. c. an increase in short-run aggregate supply. d. a decrease in short-run aggregate supply.
Which of the following does the labor-leisure budget constraint identify?
a. Only the labor-leisure combinations that are possible b. Only the labor-leisure combinations that may be preferable c. Only the hours of leisure that are possible d. Only the income-leisure combinations that are possible
The Miami Dolphins play football in Joe Robbie Stadium which holds 76,500 seats. In 2009, attendance averaged about 70,000 fans per game. This means that the quantity supplied of seats is
A) 76,500. B) 70,000. C) 6,500. D) 126,500.
The market price for Chinese televisions recently changed from $200 per television set to $150 . _____, will benefit the most from this change in price
a. Lee Gadgets Co., a retail shop that sells Chinese televisions to consumers b. Wayne Inc., a manufacturer of Chinese televisions c. Harry, a consumer who buys a Chinese television set d. Light Inc., a wholesaler who sells Chinese televisions to retailers