A vertical supply curve exhibits
A) a constant elasticity of supply.
B) a perfectly inelastic supply curve.
C) Both A and B are true.
D) None of the above.
C
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Suppose that in Slovakia one unit of labor can produce either 16 tons of wheat or 32 tons of soy and in Poland one unit of labor can produce either 4 tons of wheat or 2 tons of soy. Given this information, which of the following statements is true?
A. Slovakia has a comparative advantage in producing neither wheat nor soy. B. Slovakia has a comparative advantage in producing both wheat and soy. C. Poland has a comparative advantage in producing soy but not wheat. D. Poland has a comparative advantage in producing wheat but not soy.
Why might certain industries have a long run and a short run that is not separated by very much time?
What will be an ideal response?
At the profit-maximizing level of output for a perfectly competitive firm
A) average revenue equals average variable cost and price equals marginal cost. B) marginal revenue equals marginal cost and average total cost equals average fixed cost. C) price equals marginal cost. D) price equals average revenue and marginal cost equals average variable cost.
Which of the following will cause a movement upward along a supply curve?
a. Increases in raw-material costs. b. Increases in labor costs. c. Increases in the cost of machinery. d. Increases in the market price of a good, other things being equal.