The short-run supply curve for a competitive firm is the:
A. Entire MC curve
B. Segment of the MC curve lying below the AVC curve
C. Segment of the MC curve lying above the AVC curve
D. Segment of the AVC curve lying to the right of the MC curve
C. Segment of the MC curve lying above the AVC curve
You might also like to view...
If there is an advancement in the technology used to produce a product, what is the likely effect it may have on the supply?
A) The company would not change its manufacturing. B) It would increase the supply. C) It would decrease the supply. D) More people would be needed to produce the product.
In a market with asymmetric information, a good is said to have hidden characteristics if:
A) the consumption of the good imposes an additional cost on the society. B) the production of the good generates additional benefits to the society. C) the seller offers secret discounts to some buyers. D) the buyer or the seller observes something about the good that the other does not.
Optimal price regulation sets price equal to
A) marginal cost. B) average variable cost. C) average cost. D) minimum average cost.
Which of the following is an example of economies of scale?
a. Output remaining constant when the number of workers increases from 50 to 100 b. Output increasing from 500 units to 600 units when the number of workers increases from 50 to 100 c. Output increasing from 500 units to 1,500 units when the number of workers increases from 50 to 100 d. Output increasing from 500 units to 900 units when the number of workers increases from 50 to 100