Suppliers will provide more of a good when
A) the market price increases.
B) the good is a normal good.
C) resource prices increase.
D) there is a decrease in demand.
A
You might also like to view...
A firm produces an output level at which price is greater than marginal cost. Explain why this is inefficient
What will be an ideal response?
The Slutsky decomposition of the effect of the real wage on a person's labor supply decision suggests that the negative income effect of such a wage change will be larger: a. the smaller is the quantity of labor supplied and the smaller is the effect of non-labor income
b. the smaller is the quantity of labor supplied and the larger is the effect of non-labor income. c. the larger is the quantity of labor supplied and the smaller is the effect of non-labor income. d. the larger is the quantity of labor supplied and the larger is the effect of non-labor income.
If the demand function for a particular good is Q = 20 ? 8P, then demand at a price of $1 is:
A. unit elastic. B. elastic. C. inelastic. D. The elasticity cannot be determined.
This problem should be done in four steps. First, fill in the table directly below. Assume that fixed cost is $100 and price is $79. Second, on the graph paper draw the graphs of the firm's demand, marginal revenue, average variable cost, average total cost, and marginal cost curves. Be sure you label the graph correctly. Indicate the firm's short-run and long-run supply curves, and the break-even and shutdown points. Third, calculate total profit in the space below and then answer questions A-D. Fourth, complete the second table.
A. The minimum price the firm would accept in the short run would be $___________.
B. The minimum price the firm would accept in the long run would be $___________.
C. The output at which the firm would operate most efficiently would be ___________.
D. The output at which the firm would maximize profits would be ___________.
