Questions and Answers
What does the market demand curve represent?
With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. What is its output?
If the short-run average variable costs of production for a firm are rising, what does this indicate?
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?
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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?
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What would cause a leftward shift of the supply curve?
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