The short-run supply curve of a perfectly competitive firm
A. intersects the minimum point of its short-run average total cost curve but not its short-run average variable cost curve.
B. intersects the minimum point of its short-run average variable cost curve but not its short-run average total cost curve.
C. intersects the minimum point of both its short-run average variable cost and its short-run average total cost curves.
D. intersects the minimum point of its short-run average total cost curve and may or may not intersect the minimum point of its short-run average variable cost curve.
Answer: C
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If the aggregate price level at time t is denoted by Pt, the inflation rate from time t - 1 to t is defined as
A) ?t = (Pt - Pt - 1)/Pt - 1. B) ?t = (Pt + 1 - Pt - 1)/Pt - 1. C) ?t = (Pt + 1 - Pt )/Pt. D) ?t = (Pt - Pt - 1)/Pt.
All other things being equal, quantity supplied of agood rises when the price of a good rises, and falls when the price of the good falls
What will be an ideal response?
Considering the relevant market structures, which is an INCORRECT statement?
A. In any market situation, the number of firms is not very important. B. In monopolistic competition, there is a large number of firms. C. In a perfectly competitive situation, there is an extremely large number of firms. D. In pure monopoly, there is only one firm.
Which of the following is the BEST example of a natural monopoly?
A) book publisher B) electric utility C) coffee shop D) airline