Assume that the resource market is purely competitive. If the price of the resource falls, other factors constant, then a firm that sells its product in a purely competitive market will:
A. Increase production by a larger amount than a firm with some monopoly power in its product market
B. Increase production by a smaller amount than a firm with some monopoly power in its product market
C. Decrease production by a larger amount than a firm with some monopoly power in its product market
D. Decrease production by a smaller amount than a firm with some monopoly power in its product market
A. Increase production by a larger amount than a firm with some monopoly power in its product market
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Which of the following are TRUE regarding Milton Friedman's k-percent money targeting rule?
i. Currently this policy is used by many policy makers. ii. This rule sets the growth rate of the quantity of money independently of the economy's behavior. iii. For this policy to work well, the velocity of circulation must be stable. A) ii and iii B) i and ii C) i only D) ii only E) iii only
If the demand curve is perfectly elastic, the elasticity coefficient is ____ and the curve is ____
a. zero, vertical b. infinity, horizontal c. zero, horizontal d. infinity, vertical
How has global trade affected income inequality? Explain briefly.
What will be an ideal response?
A downward shift in the Fed's policy reaction function corresponds to a ________ the aggregate demand curve and a decrease in exogenous spending corresponds to a ________ the aggregate demand curve.
A. movement up; shift right of B. shift left of; movement up C. shift left of; shift right of D. shift right of; shift left of