"Because a firm's supply curve slopes upward, the long-run supply curve of an industry must also slope upward." Do you agree or disagree? Explain
What will be an ideal response?
Disagree. Even though a firm's supply curve slopes upward, the slope of the industry supply curve in the long run can be positive, negative or horizontal. An upward sloping industry supply curve reflects that an increase in industry output is accompanied by an increase in long-run average costs, while a downward sloping industry supply curve reflects a corresponding decrease in long-run average costs, and a horizontal industry supply curve reflects no change in long-run average costs.
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The short-run model makes use of the , which assumes that private consumption expenditure is sensitive to changes in current income.
a. Pareto-optimal condition b. consumer sovereignty model c. Keynesian consumption function d. consumption-smoothing model
Refer to Table 9-11. If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many hats will Belize consume?
A) 100 B) 130 C) 250 D) 400