If the fringe supply curve shifts leftward in the dominant firm model, then the resulting market equilibrium price is ________ and the dominant firm's quantity ________
A) lower, decreases
B) lower, increases
C) higher, decreases
D) higher, increases
D
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A friend claims that the United States is a net international debtor. The best way of testing this claim is to see whether
A) U.S. foreign liabilities exceeded U.S. foreign income. B) U.S. receipts from foreign assets exceeded U.S. payments to foreign owners of U.S. assets. C) U.S. official reserve assets were positive or negative. D) the United States ran a balance of payments surplus or deficit last year.
Technological advances: a. Shift only the short run aggregate supply curve to the right
b. Shift only the long run aggregate supply curve to the right. c. Shift both short run and long run aggregate supply curves to the right. d. Do none of the above
Jessica owns a company that makes pre-packaged sandwiches for convenience stores. The market price for a sandwich is $5 and Jessica is a price-taker. Her daily variable cost for making sandwiches is C(Q) = 2.5Q + (Q2/40) and her marginal cost is MC = 2.5 + (Q/20). What is the average cost of a sandwich at the quantity of sandwiches Jessica should be selling each day?
A. $1.25 B. $2.50 C. $3.75 D. $6.25
A decrease in demand means that quantity demanded falls
A. at least one price. B. at a few prices. C. at most prices. D. at all prices.