The vertical aggregate supply curve is consistent with
a. the classical model
b. the short run macro model
c. a typical firm's supply curve
d. a positive demand shock
e. a negative demand shock
A
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A small increase in the annual rate of economic growth can lead to a larger increase in growth over time due to the effects of
A) the money supply. B) compounding. C) regression towards the mean. D) averaging.
The monopolist faces the market demand curve
a. True b. False Indicate whether the statement is true or false
Which type of curve results when oligopoly firms agree to match each other’s price cuts, but not to match price increases?
a. Market dilemma curve b. Average cost curve c. Bent supply curve d. Kinked demand curve
Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. Refer to Figure 12-5. If the firm's fixed cost increases by $1,000 due to a new environmental regulation, what happens in the diagram above?
A) All the cost curves shift upward.
B) Only the average variable cost and average total cost curves shift upward; marginal cost is notaffected.
C) Only the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected.
D) None of the curves shifts; only the fixed cost curve, which is not shown here, is affected.