If the quantity of a good exchanged increased,
a. It would also increase the price if it was caused by a shift in demand
b. It would also increase the price if it was caused by a shift in supply.
c. We would not know how price would change if we didn't know whether it was due a shift in demand or a shift in supply.
d. Answers a. and c. would both be true.
d
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A firm is a price taker if it
A) always sells its output at the industry-determined price. B) takes consumer demand into consideration in setting its price. C) takes its production costs into consideration in setting its price. D) uses a pricing strategy to gain market share.
If a firm shuts down in the short run, it will
a. incur losses equal to its fixed costs b. produce at the output level where MC = MR c. reduce its losses to zero d. do this because P > AVC e. have total revenue greater than total fixed costs