A perfectly competitive firm's short-run supply curve is the:
a. segment of the marginal cost curve above average fixed cost.
b. segment of the marginal cost curve above the minimum level of average variable cost.
c. upward-sloping segment of the marginal cost curve.
d. both a and b.
b
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According to the figure shown, Joe:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. has a dominant strategy to put forth high effort.
B. does not have a dominant strategy.
C. has a dominant strategy to put forth low effort.
D. will reach an optimum outcome by acting in his own self-interest.
Suppose Country A, a relatively capital-abundant country, experiences further expansion in its endowment of capital. Explain how this might affect its volume (amount) of trade and its terms of trade with the rest of the world. Under what conditions (if any) would the economic well-being of Country A decline after the increase in its capital endowment?
What will be an ideal response?
The most appropriate countercyclical policy, or stabilization policy, in times of unemployment, according to classical economists, is for the government to:
A. increase the minimum wage. B. do nothing. C. stimulate aggregate demand. D. cut taxes.
During the Great Depression in the 1930s the banking industry was crippled so badly that nearly _____ of the banks failed.
A. 50% B. 20% C. 25% D. 33%