The substitution effect of a price change describes what happens to the shift in demand for a good when its price changes

Learning by doing, which leads to lower costs in the long run, is often

A) increased when new machinery is brought into the production process. B) a function of cumulative output, that is producing more of the good or service. C) improved through better use of computers in the production process. D) not very important to most firms.

Which of the following is a characteristic of perfect competition?

a. large barriers to entry b. a small number of firms c. firms selling unique goods d. None of the above is correct.