A perfectly competitive firm has a horizontal supply curve in the short run
a. True
b. False
B
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During an economic downturn, Keynes argued that firms would have ________ to increase spending because ________.
A. no incentive; interest rates would be too high. B. no incentive; they already had enough capacity to meet demand. C. a strong incentive; interest rates would be too high. D. a strong incentive; they wouldn't have enough capacity to meet demand.
If producing more output has no effect on average cost then
A) there are diseconomies of scale. B) there are economies of scope. C) there are diseconomies of scope. D) there are no economies of scale.
Assuming Pepsi and Coke are substitutes, a decrease in the price of Pepsi is likely to
A. decrease the demand for Coke. B. increase the demand for Pepsi. C. decrease the demand for Pepsi. D. increase the demand for Coke.
One reason for the rise in the natural rate of unemployment from 1960 to 1980 is
A. the decline in inflation. B. increased competition from foreign workers. C. changes in the demographic composition of the workforce. D. the depreciation of the dollar relative to foreign currencies.