Multiple Choice
According to the Law of Supply,
A) price and quantity supplied are positively related,
B) firms produce less output as the price of the product rises, ceteris paribus
C) marginal cost rises as the firm contracts production
D) there is an inverse relationship between output and price, holding all else constant
Correct Answer:
Verified
Correct Answer:
Verified
Q12: If a firm maximizes output from a
Q13: A change in price results in a
Q14: If a firm makes production decisions such
Q15: In perfect competition, the firm faces a
Q16: If the price level is such that
Q18: Allocative efficiency in a market means that
Q19: According to the theory of demand,<br>A) a
Q20: The demand price represents the consumer's willingness
Q21: Assume that the marginal revenue associated with
Q22: Suppose that a producer's supply curve is