Refer to the information provided in Figure 3.11 below to answer the following question(s).
Figure 3.11Refer to Figure 3.11. A decrease in the price of mushrooms (an input for gardenburgers) will cause a movement from Point B on supply curve S2 to
A. supply curve S3.
B. Point C on supply curve S2.
C. supply curve S1.
D. Point A on supply curve S2.
Answer: A
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In an oligopolistic market, prices will tend to be closer to the competitive price:
1. the greater the number of sales. 2. the more government regulation there is in the market. 3. the greater the number of firms in the industry. 4. when the product is more distinguishable from its competitors.
A vertical supply curve would mean that
A. the price does not affect the quantity supplied. B. as price decreases, quantity supplied decreases. C. as price decreases, quantity supplied increases. D. market equilibrium has been reached.
Graphically, how does a monopolistically competitive firm determine its profit-maximizing price?
A) It accepts the price set by the industry-wide forces of supply and demand. B) Graphically, it finds the place where MR = MC and charges the price directly to the left of that point. C) The firm's pricing structure is set by government regulators. D) The firm determines its profit-maximizing output and then charges the price associated with the point on its demand curve directly above that quantity.
Education is an investment in human capital.
Answer the following statement true (T) or false (F)