Answer the following statements true (T) or false (F)
1. The short-run supply curve of a purely competitive industry tends to be steeper than the long-run supply curve.
2. The long-run supply curve for a competitive, decreasing-cost industry is downward-sloping.
3. The reason why the long-run supply curve for a purely competitive industry may be upward-sloping is because of diminishing marginal returns.
4. An upward-sloping long-run supply curve indicates a constant-cost industry.
5. Productive efficiency refers to a condition where marginal cost is equal to marginal revenue in the long run.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. FALSE
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The supply curve for CDs shows the
A) minimum price that consumers are willing to pay if a given quantity of CDs is available. B) maximum price that consumers are willing to pay if a given quantity of CDs is available. C) maximum price that producers must be offered to get them to produce a given quantity of CDs. D) minimum price that producers must be offered to get them to produce a given quantity of CDs.
Which of the following would likely cause the dollar to appreciate?
a) Lower interest rates in the United States. b) An increase in United States citizens' preference for foreign goods. c) Income growth of the United States lagging behind that of other countries. d) Rising inflation in the United States.