Define the short-run industry supply curve. Explain the two factors that can cause the short-run industry supply curve to shift to the right
What will be an ideal response?
The short-run industry supply curve is the sum of marginal cost curves above AVC of all the firms in the industry. The two factors that can shift the short-run industry supply curve to the right are a decrease in the price of an input and an increase in the number of firms in the industry. It could also be the result of increased plant size for existing firms and improvements in technology.
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What will be an ideal response?
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a. True b. False
Wage decreases lead to a decrease in aggregate quantity supplied
a. True b. False Indicate whether the statement is true or false
An equation in the simultaneous equations model satisfies the order condition for identification if:
A. the number of excluded endogenous variables from the equation is at most as large as the number of right-hand side exogenous variables. B. the number of excluded endogenous variables from the equation is at least as large as the number of right-hand side exogenous variables. C. the number of excluded exogenous variables from the equation is at most as large as the number of right-hand side endogenous variables. D. the number of excluded exogenous variables from the equation is at least as large as the number of right-hand side endogenous variables.