Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. The current market price is 4 cents per page. With no change in demand and technology, in the long run, the price will
A) remain unchanged.
B) rise to 5 cents per page.
C) fall to 2 cents per page.
D) fall to 1 cent per page.
C
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When a market is not in equilibrium:
A. a change in either supply or demand is required to reestablish equilibrium. B. there is neither excess supply nor excess demand. C. the economic motives of sellers and buyers will move the market to its equilibrium. D. government intervention is required to achieve equilibrium.
Refer to the above diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market the indicated shift in supply may have been caused by:
A. this product becoming less fashionable. B. an increase in the wages paid to workers producing this good. C. an increase in consumer incomes. D. the development of more efficient machinery for producing this good.
Which of the following is an example of an indivisible input?
A. the amount of labor a firm hires B. flour used to produce bread C. wood used to produce paper D. train tracks between two cities
Refer to Table 4-12. The equations above describe the demand and supply for Bubba's Fried Jellybeans. What are the equilibrium price and quantity (in thousands) for Bubba's Fried Jellybeans?
A) $40 and 5 thousand B) $20 and 20 thousand C) $60 and 10 thousand D) $80 and 40 thousand