If input prices rise as industry output expands, then a perfectly competitive firm's marginal cost and average cost curves will:
a. shift upward
b. shift downward.
c. not shift. As the firm increases production, however, costs increase as the firm moves upward to the right along these curves.
d. not shift. As the firm increases production, however, costs decrease as the firm moves downward to the left along these curves.
a
Economics
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Which of the following best explains why the behavior of an individual firm in an oligopoly is difficult to predict?
a. Each firm is interdependent. b. Each firm is a perfect competitor. c. There are a large number of firms. d. The price follower is difficult to identify.
Economics
The acronym HICP stands for:
(a) Harmonised Index of Consumer Prices; (b) Higher Institute for Central Planning; (c) Harmonised Index of Current Production; (d) Hyper-Inflation Control Programme.
Economics