Which of the following statements is consistent with an increase in supply?
A) The price of labor input has increased.
B) There has been an advance in technology.
C) Consumers' incomes have increased.
D) The market price has decreased.
Answer: B
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In the circle model with constant marginal cost, each point on the circle will contain a firm in equilibrium if fixed entry costs are zero.
Answer the following statement true (T) or false (F)
A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the
A) real interest rate. B) productivity relation. C) production function. D) marginal product.
A business produces 5,00 . units per month. Costs include: $12,00 . on raw materials, $20,00 . on operators and $14,00 . on sales people. Other costs of running the factory were $50,00 . for rent and $30,00 . on other fixed overheads. In order to break even the selling price per unit will have to be:
a. $25.20 b. $29.60 c. $20.30 d. $28
The short-run supply curve for a competitive firm is the:
A. Entire MC curve B. Segment of the MC curve lying below the AVC curve C. Segment of the MC curve lying above the AVC curve D. Segment of the AVC curve lying to the right of the MC curve