ECON1 (set 3)

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?

20 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 million gallons

Why does the supply curve NOT shift following a price change?

Because you can read the same graph to find the new quantity supplied.

Higher marginal costs mean that:

a firm will be less profitable when it increases the quantity supplied.

To distinguish between movements along a supply curve and shifts in supply curves, if the only thing that's changing is the price, then you're thinking about:

a movement along the supply curve

Which statement does NOT describe how sellers respond to a low market price?

companies would supply a larger quantity

When firms expect a higher price of a good next year, they would _____ their storage of their goods this year and _____ their supply of the goods next year.

increase increase

When a business uses more inputs to produce less output, there will be a(n) _____ in marginal costs. The individual supply curve would _____.

increase shift to the left

The _____ reminds us that things other than price can influence your supply.

interdependence principle

In a(n) _____, all firms sell an identical good and there are a lot of buyers and sellers whose sizes are relatively small compared to the size of the market.

perfectly competitive market

If you have a job:

you are a supplier of labor to your employer

When following the Rational Rule for Sellers in Competitive Markets, it is NOT true that:

your supply curve is decreasing with increased marginal costs