Under conditions of perfect competition, profits can get squeezed out because of a
a. rising ATC curve.
b. higher AR curve.
c. higher MR curve.
d. lower ATC curve.
a. rising ATC curve.
You might also like to view...
What are the main arguments for and against Fed independence?
What will be an ideal response?
What is the median voter model? Describe four different ways in which this theory is predicted to impact the behavior of political candidates
How will an interest rate decrease in the United States affect equilibrium in the foreign exchange market?
A) The equilibrium exchange rate will increase, and the equilibrium quantity of dollars traded cannot be determined. B) The equilibrium exchange rate will decrease, and the equilibrium quantity of dollars traded cannot be determined. C) The equilibrium exchange rate cannot be determined, and the equilibrium quantity of dollars traded will increase. D) The equilibrium exchange rate will increase, and the equilibrium quantity of dollars traded will increase.
If a household's income doubles, its budget constraint will
A. shift in parallel to the old one. B. shift out parallel to the old one. C. pivot at the Y-intercept. D. be unaffected.