The short-run supply curve of the perfectly competitive industry is found by summing the
a. AC curves of the individual firms in the industry.
b. AVC curves of the individual firms in the industry.
c. MC curves above AVC of the individual firms in the industry.
d. There is no short-run supply curve in a competitive industry.
c
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From an economist's perspective, information is a product, but differs from other goods and services in all of the following ways except which one?
A) It is expensive to produce, but cheap to communicate. B) One firm's use of information does not prevent other firms from simultaneously using the exact same information. C) It is expensive to produce, but cheap to copy. D) Information created by firms cannot be protected through government laws.
A monopoly firm operates with declining marginal cost. If regulators impose marginal cost pricing, the market will
a. remain a monopoly but behave like a perfectly competitive industry. b. become perfectly competitive. c. be entered by additional firms but will not necessarily become perfectly competitive. d. be exited by the existing firm if the regulators will let the firm leave the market.
If interest rates are rising in an economy, what might the relationship be between savings and investment that is causing this to happen?
a) Savings is greater than investment demand. b) Investment demand is greater than savings. c) Savings and investment are both rising rapidly. d) Savings and investment are both falling rapidly.
A higher rate of saving should lead to
A. higher current consumption. B. more investment, higher capital growth, and more future consumption. C. a higher price level and reduced future consumption. D. less growth.