Which of the following would cause a firm's cost curves to shift upward?
a. a reduction in resource prices
b. a decrease in taxes
c. an improvement in technology
d. an increase in government regulations
D
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When a country's imports are larger than its exports, the country is running a trade deficit
Indicate whether the statement is true or false
La Dila and Swiss Pro are the only two firms in an industry. The firms charge equal prices for their products, which are perfect substitutes. La Dila decides to lower its price slightly. Swiss Pro responds by cutting its price further
This price cutting will continue as long as each firm's ________. A) price is lower than marginal cost B) price is higher than marginal cost C) price is higher than zero D) price is higher than the average fixed cost
Two small airlines provide shuttle service between Las Vegas and Reno. The services are alike in every respect except that Fly Right bought its airplane for $500,000, while Fly by Night rents its plane for $30,000 a year
If Fly Right were to go out of business, it would be able to rent its plane to another airline for $30,000. Which airline has the lower costs? A) Fly Right. B) Fly by Night. C) Neither, the costs are identical. D) Neither, Fly by Night has lower costs at small output levels and Fly Right has lower costs at high output levels.
According to the above figure, if the firm is earning zero economic profits, what quantity is the firm selling and at what price?
A. Q = 1,200; P = $7 B. Q = 1,000; P = $5 C. Q = 800; P = $4 D. Q = 200; P = $4