Law of supply
What will be an ideal response?
There is a positive (direct) relationship between price and quantity supplied
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In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society. b. defined to be the highest-valued alternative that must be forgone when a choice is made. c. best illustrated by knowing why consumers choose one good over another. d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something. e. the methodology that government economists use to determine the total amount of the national debt.
Suppose coal is mined at a zero marginal cost and is priced competitively. If the price of coal is growing faster than the interest rate, then coal miners
a. are making positive economic profits. b. will increase the amount of coal left unmined. c. should extract more coal now and less coal in the future. d. will exit the industry in the long run.
Refer to the above figures. A unit tax of $2 has been levied on a good. Which of the panels depict the effect of the taxes?
A. Panel 1 B. Panel 2 C. Panel 3 D. None of the diagrams reflect the effect of the tax.
Suppose a firm has the following total cost function: TC = 50 + 2q2. What is the minimum price necessary for the firm to earn profit?
A) p = $20 B) p = $30 C) p = $35 D) p = $40