Which of these will hold true for an unregulated, competitive industry?
A. The market price will be lower than the marginal cost of production.
B. The marginal cost will be higher than the average cost of production.
C. The marginal cost of production will be equal to the market price.
D. The market price will be higher than the marginal cost of production.
Answer: C
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A household increases its wealth by
A) increasing its capital consumption. B) making sure that its net investment exceeds its gross investment. C) saving. D) spending more on consumption goods. E) decreasing its depreciation.
Assuming that wine is a normal good, an increase in consumer income, other things being equal, will:
a. cause an upward movement along the demand curve for wine. b. shift the demand curve for wine to the left. c. cause a downward movement along the demand curve for wine. d. shift the demand curve for wine to the right.