Briefly describe what happens when a perfectly competitive firm increases the total quantity it supplies of a good
As a perfectly competitive firm produces a greater quantity of output, its total revenue steadily increases at a constant rate determined by the given market price.
You might also like to view...
Which of the following is correct? i. U.S. total surplus decreases when the United States exports a good. ii. U.S. total surplus decreases when the United States imports a good. iii. U.S
total surplus increases when the United States imports a good and when it exports a good. A) i only B) iii only C) i and ii D) ii only E) None of the above because the U.S. total surplus does not change as a result of trade
Individuals who have stopped looking for work because they are convinced that they will not find a job are considered
A. part of the labor force. B. structurally unemployed. C. underemployed. D. discouraged workers.
The relationship between the aggregate demand curve and the aggregate expenditures model is derived from the fact that:
A. A decrease in the price level shifts the aggregate expenditures schedule downward and decreases equilibrium GDP B. A decrease in the price level shifts the aggregate expenditures schedule upward and increases equilibrium GDP C. An increase in the price level shifts the aggregate expenditures schedule upward and increases equilibrium GDP D. An increase in the price level shifts the aggregate expenditures schedule downward and increases equilibrium GDP
"Full employment" refers to the situation when there is
A. 100% employment of the labor force. B. no frictional or structural unemployment. C. no cyclical unemployment. D. a 0% unemployment rate.