The individual firm supply curve is the marginal cost curve above the:

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The individual firm supply curve is the marginal cost curve above the:

Minimum average fixed cost

technological change causes

a shortage

4. The nation with the lowest cost of production has a(n) ______________ advantage.

a. absolute

14. Modern economics does not use which type of consumer theory:

a. cardinal utility

6. Trade between countries will result in

a. increases in overall income

21. The demand curve facing an individual firm in a competitive industry is

a. perfect elastic or horizontal at the industry equilibrium price

A price ceiling results in

surpluses

The market supply curve is

the horizontal sum of all individual supply curves

An elasticity measures

how economics influenced the stock market

price support

increases producer surplus and increases consumer surp

if a a change in the price of beef results in no change in the quantity demanded of fish, then the goods are

own-price elastic

8. A group of firms that join together to regulate price and production decisions is

d. a cartel

2. As societal incomes grow, we expect that the largest increase in spending will be on

d. environment

12. The role of government

d. is necessary in the case of market failures

22. A competitive firm's best strategy for maximizing profits is to

d. minimize its costs

20. A competitive firm is a

d. price taker

the nation with the lowest opportunity costs of producing a good has a __________ advantage.

b. comparative

16. The key characteristic of a monopolistic competitor is

b. differentiation of product

23. In a competitive industry with a firm with negative economic profits

b. exit of a firm will occur in the industry

11. If the government implements a price support for a commodity

b. farmers will increase production creating a surplus

13. Consumer surplus is

13. Consumer surplus is

19. The most profitable firms in competitive industries

c. adopt technology early

7. An increase in transaction costs between two countries involved in trade is

c. bad for producers in exporting country

15. Large firms can take advantage of

c. economies of size from spreading fixed costs across more production

18. A monopoly produces a product that

c. has no close substitutes

17. A natural monopoly has

c. large fixed costs

3. A tragedy of the commons results when

c. the costs of using a resource are not charged to the user

if the the price of a good increases one percent, and quantity supplied increases two percent, then the supply of the good is

cannot tell from the information given

peanut butter and jelly are

complements in consumption

assume that at the current price, the firms in the industry are generally unprofitable and the industry meets the conditions for a competitive market. What would you expect in the long run?

firms would exit the market

Which of the following has the most elastic demand curve

fruit

The income elasticity of demand for food is:

greater than 1

Technological change that increases production of a product at each level of an input result

nn increase in price of the product and a decrease in quantity of the product

An individual demand curve for pizza can be derived with the following:

prices of pizza and two other goods

Governments can use a Pigouvian tax to

resolve a negative externality

a price support results in

shortages

if the price is lower than the equilibrium price, the

the price will decrease over time

if the quantity supplied is less than the quantity demanded, there is a

trade deficit


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