Econ Learning Curve Questions

The _____ is a graph plotting the total quantity of an item supplied by the entire market, at each price.

Market Supply curve

Each statement is a reason that a higher price leads to a larger quantity supplied to the market EXCEPT:

a low price will render some existing suppliers unprofitable, and they might choose to shut down and exit the market.

A perfectly competitive market is a market in which all firms in an industry sell an identical good, and there:

are many buyers and sellers.

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

decrease; increase

Marginal product is the _____ in output that arises from an additional unit of an _____, like labor.

increase; input

Shifts in supply are all about the _____, with your best supply decisions depending on many other factors.

interdependence principle

When your suppliers increase the prices of your inputs, they increase your _____, and this will shift your supply curve to the _____.

marginal costs; left

If Cole's Biscuits, a perfectly competitive firm, shuts down in the short run, Cole will pay:

only fixed cost.

For each _____, the market supply curve illustrates the _____ by the market.

price; total quantity supplied

Productivity growth allows businesses to _____ and is a key force that firms can reduce their marginal costs through time.

produce more outputs using fewer inputs

An individual supply curve is a graph plotting the:

quantity of an item that a business plans to sell at each price.

The supply curve is upward-sloping because:

the marginal cost curve is upward-sloping.

If all individual supply curves don't shift after a price change, the market supply curve _____.

will not shift