What is a long-run supply curve?
What will be an ideal response?
A long-run supply curve is a curve showing the relationship between market price and quantity supplied in the long run.
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In the above figure, by increasing its output from Q2 to Q3, the firm
A) reduces its marginal revenue. B) increases its marginal revenue. C) decreases its profit. D) increases its profit.
Exhibit 16-3 Income for two persons NameIncome Meredith$124,000 Hillary$ 45,000 In Exhibit 16-3, if the income tax system is currently proportional, we know that:
A. Meredith would probably prefer a progressive income tax system while Hillary would probably prefer a regressive income tax system. B. Meredith and Hillary would both probably prefer a regressive income tax system. C. Meredith and Hillary would both probably prefer a progressive income tax system. D. Meredith would probably prefer a regressive income tax system while Hillary would probably prefer a progressive income tax system.
A firm earning economic losses should operate in the short run as long as
A. the price per unit sold is equal to or greater than the marginal cost of production. B. marginal revenue is at least the price per unit sold. C. the price per unit sold is greater than the average variable cost per unit produced. D. the price per unit sold is greater than the average fixed cost per unit produced.
Explain the concept of marginal factor cost. Why is the marginal factor cost higher than the wage rate?
What will be an ideal response?