The long-run supply curve in a competitive market is upward-sloping
Indicate whether the statement is true or false
False. The shape of the long-run supply curve will depend on how similar the firms are and on the relationship between factor prices and total industry output.
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Suppose a particular production process results in a large amount of pollution and the government decides to impose a tax to correct for this externality, such that the socially optimal output will be produced. The tax will have the effect of shifting the
A. marginal private benefit curve to the right. B. marginal social benefit curve to the right. C. marginal private cost curve to the left. D. marginal social cost curve to the left. E. marginal private cost curve to the right.
Every market exchange is a Pareto superior move
a. True b. False
Cartels are unstable for each of the following reasons except which one?
A) entry by new firms B) the self-interest of each member C) barriers to entry D) the bargaining necessary to form a cartel
Any event that increases the value of the marginal product of labor will:
A. increase labor demand. B. decrease labor supply. C. increase labor supply. D. decrease labor demand.