The Law of Supply states that when the market price ______, the profit-maximizing sales quantity for a price taking-firm never ______.
A. increases; increases
B. increases; decreases
C. decreases; decreases
D. decreases; stays the same
B. increases; decreases
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When more workers are hired, the firm's output expands at an increasing rate only
a. when the law of diminishing returns is operative b. under conditions of noncompeting labor markets c. if each worker's MPP is positive d. when technology is improved e. when the gains from specialization of labor outweigh all other factors affecting labor productivity
The self-interest model of government:
a. suggests that government officials are selfish. b. explains why there are limits on government taxation and spending. c. shows who some government projects take place even if the cost exceeds the benefits. d. All of the above.
An example of an externality occurs when a chemical factory
A) is producing ethanol and dumps waste in a river upstream from a popular fishing spot. B) produces fertilizers that do not help plants grow. C) produces fertilizers that kill plants rather than feed them. D) overworks its employees.
The sole proprietorship constitutes what percentage of the total number of firms in the United States?
a. 90 percent b. 75 percent c. 60 percent d. 45 percent e. 20 percent