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