In the short run, fixed costs for a profitable firm are:
A. Zero
B. Negative
C. Important determinants of the output level
D. Irrelevant in determining the optimal level of output
D. Irrelevant in determining the optimal level of output
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Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?
A) new technology that lowers the cost of producing compact discs B) a decrease in the price of a compact disc C) an increase in the price of a compact disc D) a decrease in the number of suppliers of compact discs E) an increase in the price of the resources used to produce compact discs
A key determinant of the price elasticity of supply is the
a. number of close substitutes for the good in question. b. extent to which buyers alter their quantities demanded in response to changes in prices. c. length of the time period. d. extent to which buyers alter their quantities demanded in response to changes in their incomes.