Refer to Figure 7.4. If the market was perfectly competitive, the consumer surplus would be:

As the price level in an economy increases, firms receive lower revenues for their output and thus increase production in the short run

a. True b. False Indicate whether the statement is true or false

When economists refer to a firm's capital, they are describing the

a. markets for final goods and services. b. stock of equipment and buildings used in production. c. amount of bank financing used by the firm. d. amount of financing provided by the equity markets.