Short-run supply curves for perfectly competitive firms tend to be upward sloping because:
A) there is diminishing marginal product for one or more variable inputs.
B) marginal costs increase as output increases.
C) marginal fixed costs equal zero.
D) A and B are correct.
E) B and C are correct.
D
Economics
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If the firm has no fixed costs and variable costs of $2 per unit, what is the value of the firm's monopoly profits when it sets a price that maximizes its monopoly profits?
a. $7 b. $12 c. $15 d. $16
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Assuming that w and r are both positive, if the long-run expansion path is horizontal, then
A) MPK = 0. B) MRTS is a function of capital only. C) w = r. D) All of the above.
Economics