When price exceeds average variable cost in the short run, a competitive firm's marginal cost curve is regarded as its supply curve because
a. the position of the marginal cost curve determines the price for which the firm should sell its product.
b. among the various cost curves, the marginal cost curve is the only one that slopes upward.
c. the marginal cost curve determines the quantity of output the firm is willing to supply at any price.
d. the firm is aware that marginal revenue must exceed marginal cost in order for profit to be maximized.
c
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Consider the market for cellular phones. Which of the following shifts the demand curve leftward?
A) studies showing using cellular phones can cause brain cancer B) a decrease in the price of cellular phones C) a decrease in the quantity demanded of cellular phones D) an increase in the services provided by cellular phones, such as text messaging E) an increase in the price of cellular phones
Which of the following describes adverse selection in the insurance market?
a. The buyer has more information than the seller about whether they are high or low risk. b. The buyer behaves in a way they would not behave if they did not have insurance. c. The seller has more information about whether a buyer is high or low risk. d. The buyer and the seller know whether the buyer is high or low risk.
According to the law of comparative advantage,
What will be an ideal response?
The United States' economy is considered to be at full employment when:
A. about 4-5 percent of the total population is unemployed. B. 90 percent of the labor force is employed. C. about 4-5 percent of the labor force is unemployed. D. 100 percent of the labor force is employed.