The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive.If mushrooms sell for $40 per bushel, and Moe chooses the profit-maximizing quantity, he will:

Suppose there are only two goods, apples and oranges. What happens if the price of each good increases by 15 percent?

a. The consumer will substitute apples for oranges. b. The consumer will substitute oranges for apples. c. There is no substitution effect because relative prices have remained constant. d. Demand for both goods increases. e. Demand for both goods decreases.

Under an oligopoly market structure, rival firms take completely independent decisions

a. True b. False Indicate whether the statement is true or false