In perfect competition, an increase in fixed costs will eventually cause all except
a. reduction in industry output.
b. reduction in a firm's output.
c. reduction in the number of firms.
d. decrease in industry supply.
b
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Why do market failures arise in case of public goods?
a. The quantity produced is much more than is actually required by the people. b. The quality of these goods is not good enough. c. The quantity produced is too less from the society's point of view. d. The government wastes a lot of resources for producing a public good. e. The users of such goods are required to pay a high price for these goods.
The market's contribution to the general welfare has been its
a. stimulation of growth in productivity. b. yield of an abundance of consumers' goods. c. contribution to human longevity. d. All of the above are correct.
The long-run aggregate supply curve shows
A. the total amount of planned production for an economy. B. the various quantities of goods consumers will purchase. C. what an economy can produce if resource prices are constant. D. that real GDP can only increase when the price level increases.
The gold standard is
A. one way of achieving a fixed exchange rate system. B. the only way of achieving a floating exchange rate system. C. the only way to achieve a fixed exchange rate system. D. one way of achieving a floating exchange rate system.