In perfect competition, innovation is a means for a firm to
a. exit the market
b. establish brand loyalty
c. shift the ATC and MC curves upward
d. generate short-run economic profit
e. shift the market supply to the left
D
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A new technology that increases the productivity of teachers has what effect on the labor market for teachers?
a. The wage rate will rise, and quantity of teachers employed will fall. b. The wage rate will rise, and quantity of teachers employed will rise. c. The wage rate will fall, and quantity of teachers employed will fall. d. The wage rate will fall, and quantity of teachers employed will rise. e. There is not enough information to determine what effects there are, if any.
In terms of the price-real GDP diagram, a given expansion of the money supply will have a greater effect on prices the
a. steeper the aggregate supply curve. b. flatter the aggregate supply curve. c. higher the initial price level. d. lower the initial price level.