ECON 201 CH 3 Learning Curve

taking an economics class at your college.

All the following can be classified as supply, EXCEPT: working in a supermarket. taking an economics class at your college. tutoring your friend. selling your cellphone on the internet.

price; total quantity supplied

For each _____, the market supply curve illustrates the _____ by the market. price; individual quantity supplied marginal cost; total quantity supplied price; total quantity supplied quantity each firm supplies; price

20 million gallons

If an oil refinery can supply 2 million gallons per week when the price is $3 per gallon, what will be the market quantity supply for 10 refineries having the same supply decisions? 30 million gallons 3 million gallons 20 million gallons $30

200 million gallons

If an oil refinery can supply 5 million gallons per week when the price is $1 per gallon, what will be the market quantity supply for 40 refineries having the same supply decisions? $200 5 million gallons 200 million gallons 400 million gallons

10 million; 15 million

If the price of gas increases from $1 to $2, the quantity of gas supplied per week would change from _____ gallons to _____ gallons. 0; 15 million 10; 15 10 million; 15 million 15 million; 10 million

0 gallons

If the price of gas is less than $1 per gallon, how many gallons of gas would be supplied per week? 0 gallons 10 million gallons 30 million gallons 40 million gallons

both buyers and sellers

In perfectly competitive markets, _____ are price-takers. both buyers and sellers neither buyers nor sellers only sellers only buyers

tell sellers how to set the price against the competitors.

The Rational Rule for Sellers is important but does NOT: provide useful advice for businesses. guide managers in making the decisions that will earn their businesses the largest possible profit. tell sellers how to set the price against the competitors. help managers keep a laser-like focus on their marginal costs when making supply decisions.

upward-sloping; increases; increase

The individual supply curve is _____ meaning that when the price _____, the quantities supplied would _____. upward-sloping; increases; increase upward-sloping; increases; decrease downward-sloping; increases; increase downward-sloping; increases; decrease

the marginal cost curve is upward-sloping.

The supply curve is upward-sloping because: a decrease in output arises from an additional unit of an input, such as labor. an increase in output arises from fewer units of an input, such as labor. the marginal cost curve is downward-sloping. the marginal cost curve is upward-sloping.

shifts in the supply curve.

To distinguish between movements along a supply curve and shifts in supply curves, if market conditions other than price change, you need to think about: changes in fixed costs a movement along the supply curve a change in price shifts in the supply curve.

vary with the quantity of output you produce.

Variable costs are those costs, like labor and raw materials, that: are incurred when a company expands production, but wouldn't be incurred otherwise. are the extra cost from producing one extra unit. vary with the quantity of output you produce. don't vary when you change the quantity of output you produce.

vertical axis; horizontal axis

When you draw an individual supply curve, price goes on the _____ and quantity is on the _____. horizontal axis; vertical axis vertical axis; horizontal axis graph itself; horizontal axis vertical axis; graph itself

marginal costs; the right

When your suppliers decrease the prices of your inputs, they decrease your _____, and this will shift your supply curve to _____. marginal costs; the right fixed costs; the left marginal costs; the left fixed costs; the right

marginal costs; the left

When your suppliers increase the prices of your inputs, they increase your _____, and this will shift your supply curve to _____. fixed costs; the left marginal costs; the right marginal costs; the left fixed costs; the right

supply curve; supply curve

Your _____ is also your marginal cost curve, and so anything that will change your marginal costs will shift your _____. supply curve; supply curve supply curve; fixed costs supply curve; marginal benefits marginal benefits; supply curve