When entry and exit behavior of firms in an industry does not affect a firm's cost structure,
a. the long-run market supply curve must be horizontal.
b. the long-run market supply curve must be upward-sloping.
c. the long-run market supply curve must be downward-sloping.
d. we do not have sufficient information to determine the shape of the long-run market supply curve.
a
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The discovery of a new oil field has attracted several new investors to Oiland. How will this affect Oiland's labor demand curve?
What will be an ideal response?
The short run is that period in which firms: a. are free to vary all inputs
b. are able to vary some, but not all, inputs. c. can vary inputs, but only by varying all of their inputs in equal proportion. d. cannot increase production at all.
A price floor above the market clearing price typically results in I. an excess quantity supplied II. a shortage III. an excess quantity demand
A) I only B) II only C) III only D) II and III only
Proprietors' income is
A. the income of partnerships. B. the income of sole proprietorships. C. the income of unincorporated businesses. D. the income of all businesses-incorporated and unincorporated.