The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive.
Moe's short run supply curve is:
A. curve A above curve C.
B. curve C to the right of curve A.
C. curve B to the right of curve A.
D. curve A above curve B.
Answer: A
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The level of GDP, all else held constant, will tend to increase when ________.
A. reserve requirements are increased B. there is an increase in the discount rate C. the federal funds rate is increased D. the Federal Reserve buys government securities in the open market
By examining the data on the 18th century market for beaver furs, we learn an important economic lesson: Intense and growing competition in the absence of appropriate ____________ fails
a. property rights b. government controls c. price ceilings d. tort laws
The Second Theorem of Welfare Economics states that:
a. all Walrasian equilibria are also social welfare maxima. b. social welfare maxima will usually be Pareto inefficient. c. any social welfare maximum can be a Walrasian equilibrium with suitable transfers of initial endowments. d. all Pareto optimal allocations are social welfare maxima.
The unemployment rate is equal to
a. the number unemployed divided by the labor force. b. the number unemployed divided by the population. c. the number unemployed divided by the number employed. d. the labor force divided by the population.