The short-run supply curve for a perfectly competitive firm is its marginal cost curve
A) above the horizontal axis.
B) above its shutdown point.
C) below its shutdown point.
D) everywhere.
B
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Renee runs an accounting firm that does tax returns, which she operates out of a building that she owns downtown. She hires all of the accountants and buys the equipment and supplies for the business. The costs used to calculate the total cost curve include
A. the salaries of the accountants, the equipment and supply costs, and the opportunity cost of the building that houses the firm. B. only the salaries of the accountants and the equipment and supply costs, since she owns the building. C. just the costs of the accountant’s salaries. D. the costs of the accountant’s salaries plus the opportunity costs of the building.
In economic terms, the total price of a pound of meat for an individual who has waited in line is
A) the money price paid to the butcher for the pound of meat. B) the money price of meat relative to the price of bread or other necessity. C) the money price of the meat plus the opportunity cost of time spent waiting in line. D) the money price of an equal amount of meat substitute, such as beans and rice.
If the government increases the income tax rate, consumers have:
A. less to spend and will reduce their consumption. B. more to spend and will reduce their consumption. C. less to spend and will increase their consumption. D. more to spend and will increase their consumption.
A decrease in the interest rate will
A. increase the demand for money alone. B. increase the demand for money and decrease the supply of money. C. change neither the demand nor the supply of money; rather it will only affect the quantity demanded and quantity supplied. D. decrease the demand for money and increase the supply of money.