In the short run for a particular market, there are 5,000 firms. Each firm has a marginal cost of $7 when it produces 200 units of output. One point on the market supply curve is
a. quantity = 5,000 . price = $7.
b. quantity = 35,000 price = $35,000.
c. quantity = 1,000,000 . price = $7.
d. quantity = 1,000,000 . price = $35,000.
c
You might also like to view...
Wanda quit her job because she was unhappy at work. Arnold was fired from his landscaping job because his company was downsizing. Who is eligible for unemployment insurance benefits?
a. both Wanda and Arnold b. Wanda but not Arnold c. Arnold but not Wanda d. neither Wanda nor Arnold
Assume the minimum wage exceeds the market-clearing wage. If there is an increase in the supply of labor then the number of workers who are unemployed will ________, and the number of workers who are employed will ________.
A. increase; not change B. increase; increase C. decrease; increase D. increase; decrease
According to Keynesians and monetarists, in the short-run, what happens to the aggregate price level when the money supply increases?
a) The aggregate price level falls. b) The aggregate price level rises. c) The aggregate price level falls and then rises. d) The aggregate price level does not change.
In new Keynesian theory, the pattern of inflation exhibited by an economy with growing aggregate demand known as inflation dynamics is
A. initially speedy upward adjustment of the price level and inflation in response to higher aggregate demand followed by lower inflation in the future. B. initially sluggish downward adjustment of the price level and inflation in response to higher aggregate demand followed by lower inflation in the future. C. initially sluggish upward adjustment of the price level and inflation in response to higher aggregate demand followed by higher inflation in the future. D. initially speedy upward adjustment of the price level and inflation in response to higher aggregate demand followed by higher inflation in the future.