Refer to Figure 2-4. Consider the following events:
a. an increase in the patent protection period to 75 years
b. a hurricane that destroys a substantial portion of a nation's capital stock
c. the implementation of a secure and enforceable property rights system
Which of the events listed above could cause a movement from W to Z?
A) a, b, and c B) a only C) a and c only D) a and b only E) b and c only
C
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When the selling price of a good rises (goes up), what is the relationship to the quantity supplied?
a. The profit made on each item goes down. b. It becomes practical to produce more goods. c. The cost of production goes down. d. There is no relationship between the two.
If a firm hires a resource in a perfectly competitive resource market,
a. it must also be a price taker in the product market b. it must also be a monopolist in the product market c. it faces a horizontal marginal resource cost curve d. it faces an upward-sloping marginal resource cost curve e. it faces a downward-sloping marginal resource cost curve