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Questions and Answers
What does the market demand curve represent?
What does the market demand curve represent?
- The horizontal sum of individual demand curves
- The inability to show how quantity demanded changes in response to a change in price
- The vertical sum of individual demand curves (correct)
- The inability to show changes in demand for a good
With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. What is its output?
With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. What is its output?
- 200 units
- 800 units (correct)
- 1,600 units
- 400 units
If the short-run average variable costs of production for a firm are rising, what does this indicate?
If the short-run average variable costs of production for a firm are rising, what does this indicate?
- Average variable costs are below average fixed costs
- Average total costs are at a maximum
- Average fixed costs are constant
- Marginal costs are above average variable costs (correct)
At the point of consumer equilibrium, when does the marginal rate of substitution (MRS) equal the price ratio?
At the point of consumer equilibrium, when does the marginal rate of substitution (MRS) equal the price ratio?
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What does the market demand curve fail to show?
What does the market demand curve fail to show?
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What leads to an increase in the quantity supplied but not an increase in supply?
What leads to an increase in the quantity supplied but not an increase in supply?
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What factor would lead to an increase in supply?
What factor would lead to an increase in supply?
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What would cause a leftward shift of the supply curve?
What would cause a leftward shift of the supply curve?
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