Suppose that in a perfectly competitive market, firms are making an economic profit. In the long run, we know for sure that
a. some firms will leave the market
b. the market price will rise
c. the market supply curve will shift to the left
d. economic profit will become zero
e. production will be less than short-run production
D
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When the short-run aggregate supply curve is steep, then for a given increase in aggregate demand: a. the increase in real GDP will be relatively small and the increase in the price level will be relatively large. b. the increase in real GDP will be relatively large and the increase in the price level will be relatively small. c. the increase in both real GDP and the price level will be large
d. the increase in both real GDP and the price level will be small. e. the decrease in real GDP will be larger than the decrease in the price level.
Aggregate Supply increases when
A. government regulations proliferate. B. raw materials' prices rise. C. wages fall. D. wages rise.
Refer to the information provided in Table 2.1 below to answer the following question(s). Table 2.1?KrystalMarkWriting Poems812Writing TV Commercials24Refer to Table 2.1. For Krystal, the opportunity cost of writing four TV commercials is ________ poems.
A. 2 B. 8 C. 16 D. 32
Internal economies of scale arise when the cost per unit
A) falls as the average firm grows larger. B) rises as the industry grows larger. C) falls as the industry grows larger. D) rises as the average firm grows larger. E) remains constant over a broad range of output.