Why does the supply curve of the perfectly competitive industry shift to the right whenever a new firm enters the industry?
What will be an ideal response?
The supply curve of the competitive industry in the short run is derived by summing the short-run supply curves of all the firms in the industry horizontally. This adding-up process indicates that the supply curve of the industry will shift to the right whenever a new firm enters the industry.
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In the short run, an increase in inflation by the Fed not matched by an increase in the expected inflation rate results in ________ in the long-run Phillips curve and ________ in the short-run Phillips curve
A) no change; a downward shift B) a rightward shift; an upward shift C) a rightward shift; a downward shift D) no change; no change E) a leftward shift; an upward shift
All else constant, so long as it is negative, as the cross price elasticity of demand between a firm's product and those of its competitors increases, so does the market power possessed by the firm
Indicate whether the statement is true or false
Granting all producers access to transmission lines opened up an effective market for electricity
Indicate whether the statement is true or false
Unions tend to want import restrictions because
A) imports are usually of inferior quality. B) they can increase the wages for union workers by increasing the productivity of union workers when the workers aren't worried about foreign competition. C) the restrictions also reduce the number of immigrants that can enter the country and decrease the supply of nonunion labor. D) the restrictions decrease the demand for non-union made goods, increasing the demand for union made goods.