The reasons why a competitive firm's short-run supply curve is upward sloping are
A) the law of diminishing marginal returns and profit maximization.
B) constant returns to scale and profit maximization.
C) decreasing returns to scale and profit maximization.
D) Both B and C.
A
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Competition is best characterized as
A) a fully regulated set of market activities. B) a fair and just set of outcomes. C) a process of bids and offers. D) a necessary evil.
When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)
A) effective tariff rate less than the nominal tariff rate. B) nominal tariff rate less than the effective tariff rate. C) rise in both nominal and effective tariff rates. D) fall in both nominal and effective tariff rates. E) rise in only the effective tariff rate.
The monetary policy strategy that directly ties down the price of internationally traded goods is
A) exchange-rate targeting. B) monetary targeting. C) inflation targeting. D) the implicit nominal anchor.
Which of the following is not considered a rationale for the intervention of government in the market process in the United States?
A) the redistribution of income B) the reallocation of resources C) the long-run planning of scarce resources D) the short-run stabilization of prices E) All of the above