The price elasticity of supply for Good A is equal to 1 . Fifty units of Good A are supplied when its price is $40.0 . If the price of Good A increases to $44.80, its supply will:
a. decrease to 44 units
b. increase to 56 units.
c. increase to 54 units.
d. remain the same at 50 units.
b
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If a production technology has diminishing marginal product of all inputs throughout, then the producer choice set is convex.
Answer the following statement true (T) or false (F)
Firms in an oligopoly market can potentially earn economic profits.
a. ?In the short run, but not the long run. b. ?In the long run, but not the short run. c. ?In both the short run and long run d. ?In neither the short run nor the long run
The risk premium that risk averse investors will demand on a security will be in proportion to the __________ of the portfolio
A) systematic risk B) nonsystematic risk C) risk of the worst case return D) diversification
Beginning from a position of long-run equilibrium at the full-employment level of real GDP, the economy's short-run response to a decrease in the aggregate demand curve would be a: a. movement upward along the short-run aggregate supply curve
b. movement upward along the long-run aggregate supply curve. c. downward shift in the short-run aggregate supply curve. d. movement downward along the short-run aggregate supply curve.