The elasticity of supply is defined as the ____ change in quantity supplied divided by the ____ change in price
a. total; percentage
b. percentage; marginal
c. marginal; percentage
d. percentage; percentage
d
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The lowest point on a perfectly competitive firm's short-run supply curve corresponds to the minimum point on its
A. AFC curve. B. MC curve. C. AVC curve. D. ATC curve.
Suppose that a borrower has a near-perfect credit history before the bank loans him some money. Shortly after the loan has been made, he loses his job and spends money recklessly. This describes the problem known as
A) moral hazard. B) adverse selection. C) risk aversion. D) asymmetric information.
The effectiveness of the Family Support Act of 1988 was enhanced by generous funding
Indicate whether the statement is true or false
Figure 11.4Figure 11.4 depicts demand and costs for a monopolistically competitive firm. If the firm's demand curve shifts to the left as more firms enter the market:
A. the firm's profit will be smaller at the new profit maximizing output level. B. the firm's profit will be greater at the new profit maximizing output level. C. the firm's profit will remain the same at the new profit maximizing output level. D. There is not sufficient information.