In which of the following ways is the demand curve different in graph a and graph b
a. In graph a, its horizontal; in graph b, its upward sloping.
b. In graph a, it touches the minimum point of the ATC curve; in graph b it misses this point.
c. In graph a, it equals P; in graph b, it equals MC.
d. In graph a, it intersects the MC curve; in graph b, it misses the MC curve.
b. In graph a, it touches the minimum point of the ATC curve; in graph b it misses this point.
You might also like to view...
Henry, a perfectly competitive lime grower in Southern California, notices that the market price of limes is greater than his marginal cost. What should Henry do?
A) expand his output to increase profits B) shut down and incur a loss equal to his total fixed cost C) advertise his limes to be able to sell more output D) look for the output level where marginal revenue minus marginal cost is maximized E) shut down and earn no profit but also incur no loss
Once a division manager sees that production goal for a time period is likely to be met
a. he has an incentive to increase the pace of production b. he has an incentive to decrease the pace of production c. he does not have an incentive to change the pace of production d. he has an incentive to produce other products
When the Fed lowers the discount rate, it makes it:
a. cheaper for banks to borrow from each other. b. cheaper for banks to obtain additional reserves by borrowing from the Fed. c. more difficult for banks to accept deposits. d. more difficult for banks to extend loans.
The concept of opportunity cost is illustrated by: a. a movement from the interior of the production possibilities curve to the frontier
b. a movement from the production possibilities curve to its interior. c. a movement from a point on the production possibilities curve to the northeast. d. a movement along the production possibilities curve, as production of one good falls in order to increase production of another.