An increase in the number of firms in a perfectly competitive market causes:
A. a movement along the market supply curve.
B. an increase in the market supply curve.
C. a decrease in the market supply curve.
D. an increase in each firm's supply curve.
Answer: B
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Which of the following would NOT cause the demand curve for bonds to shift?
A) a change in wealth B) a change in the price of bonds C) a change in the liquidity of bonds D) a change in expected inflation
Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause:
a. an increase in the supply of piercings and a lower price for piercings. b. an increase in the supply of piercings and a higher price for piercings. c. a decrease in the supply of piercings and a higher price for piercings. d. a decrease in the supply of piercings and a lower price for piercings.
As long as market price remains above the average total cost, and the firm chooses the profit-maximizing level of output, it will:
A. earn zero profits. B. make profits. C. make a loss. D. Any of these is possible.
Suppose a nation's 2010 nominal GDP was $972 billion and the general price index was 90. To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must be:
a) deflated to $678 billion. b) deflated to $896 billion. c) inflated to $1080 billion. d) deflated to $1080 billion.