Refer to the above figure for the individual firm in a perfectly competitive market. If the firm's average costs are given by AC2, then
A. the industry demand curve will shift rightward.
B. the industry supply curve will shift rightward.
C. the industry supply curve will shift leftward.
D. none of these.
Answer: B
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An increase in the demand for peanuts due to changes in consumer tastes, accompanied by an increase in the supply of peanuts as a result of favorable growing conditions, will result in
A) an increase in the equilibrium price of peanuts and no change in the equilibrium quantity. B) an increase in the equilibrium quantity of peanuts; the equilibrium price may increase or decrease. C) an increase in the equilibrium price of peanuts; the equilibrium quantity may increase or decrease. D) an increase in the equilibrium quantity of peanuts and no change in the equilibrium price.
A direct relationship exists when:
a. there is no association between two variables. b. one variable increases and there is no change in the other variable. c. one variable increases and the other variable increases. d. one variable increases and the other variable decreases.
If variable X goes up as result of variable Y going down, then X and Y are
A) directly related. B) inversely related. C) independent. D) positively related.
Which of the following do private property rights involve?
What will be an ideal response?