In perfect competition, an increase in fixed costs will eventually cause all except
A. reduction in industry output.
B. reduction in a firm’s output.
C. reduction in the number of firms.
D. decrease in industry supply.
Answer: B
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Which of the following is a tax on consumption?
a. A comprehensive general sales tax. b. A comprehensive value-added tax c. An income tax in a world without saving. d. All of the above. e. a and b
The U.S. has a higher infant mortality rate than other developed countries. This is most likely a result of
a. poor medical care. b. poverty. c. poor access to medical care. d. the cause or causes are unknown. e. both b and c are true.
The Robinson-Patman Act strengthened the merger provisions of the Sherman Antitrust Act
a. True b. False Indicate whether the statement is true or false
The effect of a change in the wage rate on the number of hours people are willing and able to work is stronger when the:
A. supply of labor is inelastic. B. supply of labor is elastic. C. demand for labor is inelastic. D. demand for labor is elastic.