Long-run expansion in an increasing-cost industry increases each firm's marginal and average costs by
a. saving money on per-unit production costs
b. bidding up the price of resources
c. holding the price of resources constant
d. forcing down the price of resources
e. bidding up each firm's marginal revenue
B
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Use the following table to answer the next question.Interest RateDemand for Money (billions)7%$200630054004500If the current interest rate is 5%, what will be the equilibrium interest rate if the money supply falls by $100 billion dollars?
A. 6% B. 5% C. 7% D. 4%
The long-run supply curve for a perfectly competitive, constant-cost industry
A) is found by adding up the marginal cost curves for all firms in the industry. B) is horizontal. C) is upward-sloping. D) is downward-sloping.
In a given market, how are the equilibrium price and the market-clearing price related?
a. There is no relationship. b. They are the same price. c. The market-clearing price exceeds the equilibrium price. d. The equilibrium price exceeds the market-clearing price.
Utility measures the
a. income a consumer receives from consuming a bundle of goods. b. satisfaction a consumer receives from consuming a bundle of goods. c. satisfaction a consumer places on her budget constraint. d. All of the above are correct.