The supply curve of a perfectly competitive firm in the short run is
A) the portion of the firm's marginal cost curve above the minimum point of the average total cost curve.
B) the firm's average variable cost curve.
C) the portion of the firm's marginal cost curve above the minimum point of the average variable cost curve.
D) the portion of the firm's marginal cost curve below the minimum point of the average variable cost curve.
C
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Even when transactions are facilitated with money, imports are paid for by exports
Indicate whether the statement is true or false
Assume that a 50 percent gasoline tax led to a large increase in its price and only a small decrease in the quantity of gasoline demanded. Economic analysis would lead one to conclude that
A) gasoline should not be taxed because the benefits are uncertain. B) the benefits of taxing gasoline is a normative issue. Economic analysis can be used to contribute to discussion of this issue but cannot decide it. C) gasoline should be taxed because the benefits of the tax would exceed the costs. D) gasoline should not be taxed on ethical grounds since ethical benefits and costs can't be measured.
Suppose that the consumer price index at year-end 2004 was 140 and by year-end 2005 had risen to 150. What was the inflation rate during 2005?
What will be an ideal response?
Price-fixing is an explicit agreement among producers to sell a good at a particular price.
Answer the following statement true (T) or false (F)