The short run supply curve for a perfect competitive firm is
a. Marginal cost curve
b. Average revenue curve
c. Marginal revenue curve
d. Marginal cost curve above its average variable cost curve
d
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Refer to Figure 11.4. Which diagram illustrates the effect of an increase in the income tax rate?
A) A B) B C) C D) D
In the RBC model, an adverse supply shock causes the decrease in natural real GDP to be maximized when the labor supply curve is
A) relatively steep. B) relatively flat. C) vertical. D) horizontal.
Lunch Counter The Lunchbox is one of many options for workers in Lanford, IL to get a quick and tasty meal at reasonable prices. They wanted to raise prices but did not know if the demand would fall off too much. They decided to raise prices and wait
and see before making the increases permanent. In the first week after they raised prices on the menu an average of 10%, they served fewer lunches but their revenue did not fall. Based on this, they decided to keep the new menu. Would you expect revenue to continue at this level?
If income doubles and the quantity demanded of good x more than doubles, then good x can be described as a:
a. substitute good. b. complement good. c. necessity. d. luxury.