The ________ part of a perfectly competitive firm's marginal cost curve that is equal to or above points on its average variable cost curve is the firm's short-run supply curve.
A. backward bending
B. horizontal
C. declining
D. rising
Answer: D
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The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. What is the marginal social cost of producing the 250th pound of chocolate each day?
A) $625.00 per pound B) $2.50 per pound C) $1.00 per pound D) $0.50 per pound
In the fooling model, AD/SAS equilibria to the right of LAS are unstable because ________ nominal wages shift ________
A) falling, AD downward B) falling, SAS downward C) rising, AD upward D) rising, SAS upward
A default rule:
A. is a consequence that users of commitment devices agree to if they fail to follow through with their commitment. B. is a defined limit used to mark when someone is decidedly not making a good decision. C. defines what will automatically occur if someone fails to make an active decision otherwise. D. is the defined strength of a given commitment needed to get an individual to follow through with the commitment.
What could happen to render the price ceiling set in the graph shown non-binding?
A. Demand could increase, and shift to the right. B. Supply could decrease, and shift to the left. C. Demand could decrease, and shift to the left. D. None of these would cause the price ceiling to be non-binding.