The perfectly competitive firm's supply curve is:
a. that portion of the marginal cost curve which intersects and rises above the average total cost curve.
b. that portion of the marginal cost curve which intersects and rises above the average variable cost curve.
c. the entire marginal cost curve.
d. the rising portion of the average variable cost curve.
b
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If the short-run Phillips curve shifts rightward, what happens to the tradeoff between inflation and unemployment? If the short-run Phillips curve shifts leftward, what happens to the tradeoff between inflation and unemployment?
What will be an ideal response?
If the price of a good rises by 10% and the quantity purchased falls by 15%, then demand for the good is ________ and total spending on the good will ________
A) elastic; increase B) inelastic; increase C) elastic; decrease D) me and so inelastic; decrease
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi = 2. Based on this information, the Stackelberg follower's reaction function is:
A. QF = 24.5 ? 0.5QL. B. QF = 24.5 ? QL. C. QF = 49 ? 0.25QF. D. QF = 24.5 ? 0.25QL.
Halibut tends to be much more expensive than cod. According to the economic way of thinking, relatively high halibut prices can be explained by
A) using the theory of supply and demand. B) pointing out the cause—Halibut boats are often more expensive than boats used to fish for cod. C) acknowledging the price differential is unfair to consumers of halibut. D) acknowledging the price differential is unfair to cod fishermen.