Elasticity of Supply
What will be an ideal response?
Small change in price will lead to large change in quantity supplied
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In the long run, if price is less than average cost
A) there is an incentive for firms to exit the market. B) there is no incentive for the number of firms in the market to change. C) there is profit incentive for firms to enter the market. D) the market must be in long-run equilibrium.
Supplementary Security Incomes are provided by the U.S. government to those who:
a. regularly pay a social security tax. b. are below 65 years of age. c. lack the required education to be absorbed in the job market. d. earn less than $4,500 per year. e. are temporarily unemployed.
Perfect price discrimination occurs when:
a. each customer is charged the maximum price that each is willing and able to pay. b. two classes of customers are charged different prices as they have the same elasticities of demand. c. senior citizens are offered restaurant discounts. d. the firm sets MR < MC for each class of customers. e. the firm charges same price to different customers so that it is equal to the equilibrium price.
Producer surplus directly measures
a. the well-being of sellers. b. production costs. c. excess demand. d. unsold inventories.