An elastic supply curve is characteristic of which of the following?
a. A constant cost industry
b. An increasing cost industry
c. A decreasing cost industry
d. A monopolized industry
a. A constant cost industry
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In the long-run, if firms in a perfectly competitive market are incurring persistent economic losses, some firms will
A) exit and the price will fall. B) exit and the price will rise. C) enter and the price might either rise or fall. D) exit and the price might either rise or fall.
Which of the following is an example of a Federal Reserve operating target?
A) Federal funds rate B) Unemployment rate C) Non-financial debt D) M2
Robin owns a horse stables and riding academy and gives riding lessons for children at "pony camp.". Her business operates in a competitive industry. Robin gives riding lessons to 20 children per month. Her monthly total revenue is $4,000 . The marginal cost of pony camp is $250 per child. In order to maximize profits, Robin should
a. give riding lessons to more than 20 children per month. b. give riding lessons to fewer than 20 children per month. c. continue to give riding lessons to 20 children per month. d. We do not have enough information to answer the question.
The figure above shows the demand and cost conditions for a firm with two plants. In order to maximize profit, how many units of output should the firm produce?
A. 10 B. 20 C. 30 D. 40 E. 50