A constant-cost industry will have
A) a perfectly elastic long-run supply curve.
B) a perfectly inelastic long-run supply curve.
C) an upward sloping demand curve in the long run.
D) an upward sloping supply curve in the long run.
Answer: A
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Refer to the above figure. The profit-maximizing price for this firm is
A) P1. B) P2. C) P3. D) P4.
A market shortage occurs when:
A.) The quantity demanded is less than the quantity supplied at a given price. B.) The market price is below equilibrium. C.) Sellers produce a lot of the product and consumers like it a lot. D.) A new product is introduced at the equilibrium price.
At an output of 19, MC = $39 and AVC = $44. At an output of 20, MC = $50 and AVC = $45. At the shutdown point, AVC is
A. more than $45. B. $45. C. between $44 and $45. D. less than $44.
Suppose that the U.S. government acquires more foreign currency. This change is entered into which of the balance of payments accounts?
A) current account B) capital and financial account C) official settlements account D) reserves account E) trade account