If the price of an input increases, each individual firm's marginal cost curve shifts ________ and the industry supply curve ________.
A. downward; shifts to the right
B. up; does not change
C. downward; shifts to the left
D. up; shifts to the left
Answer: D
You might also like to view...
Pluralistic ignorance exists when the members of a group believe one thing but mistakenly assume that most of the other members believe something else
Indicate whether the statement is true or false
Explain why privatization can help the economy become more efficient
What will be an ideal response?
Assume an economy has automatic stabilizers in place that include a progressive tax structure and a transfer payment system. Then in a period of high economic growth and high inflation, we would expect:
a. tax revenues to fall and unemployment compensation to rise. b. average tax rates and welfare payments to decline. c. the national debt to become larger. d. average tax rates and government revenues to rise. e. government spending on social security benefits to rise.
The long-run supply curve is upward sloping in a constant-cost industry.
Answer the following statement true (T) or false (F)