Suppose that in a perfectly competitive market, the market supply of a good increases. As a result, the individual firm's:
a. supply curve would shift outward and the firm would increase output.
b. supply curve would shift inward and the firm would decrease output.
c. average-total-cost curve would shift upward and the firm would increase output.
d. marginal-revenue curve would shift upward and the firm would increase output.
e. marginal-revenue curve would shift downward and the firm would decrease output.
e
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Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of
A) microeconomics. B) social interest versus self-interest. C) macroeconomics. D) why to produce. E) scarcity.
All of the following will cause the supply curve of good A to shift rightward EXCEPT
A) a reduction in the prices of inputs used to produce good A. B) an increase in the number of firms in the industry producing good A. C) a decrease in the per-unit tax on good A which producers must pay. D) an increase in the market price of good A.