Refer to the table above. If the market is perfectly competitive, the equilibrium price of calculators is:
A) $2.
B) $6.
C) $12.
D) $20.
C
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Monopolistically competitive firms do not achieve productive efficiency because
a. entry of firms raises production costs in the long run b. barriers to entry allow profit to be earned in the long run c. price is greater than marginal cost at the profit maximizing output level d. profit is maximized at a quantity where average total cost is not minimized e. there is no threat of entry in the long run
If the quantity of burgers supplied increases from 2 to 4 when the price of burgers increases from $2.00 to $5.00, the response by producers would be shown by:
A. a leftward shift in the supply curve. B. a movement upward and to the right along the supply curve. C. a rightward shift in the supply curve. D. a movement downward and to the left along the supply curve.
How can a nation and its producers determine whether or not it has a comparative advantage in producing a particular good or service?
What will be an ideal response?
According to supply-side economics, a cut in taxes will affect total tax revenue, because ________
A) the level of productivity should fall precipitously with a tax cut B) a tax cut will be followed by an even larger decrease in government spending C) of the resulting increase in saving D) of the positive impact on the level of income