The total revenue curve of a perfectly competitive firm
a. is horizontal
b. is vertical
c. has a diminishing slope as output increases
d. has an increasing slope as output increases
e. has a constant slope as output increases
E
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If the price level kept increasing, the short-run aggregate supply (SRAS) curve would get steeper because
A) all the unemployed would eventually be hired. B) the long-run aggregate supply curve is horizontal. C) there are limits to how long workers can work long hours and capital can go without proper maintenance. D) the rate at which capacity can be expanded increases indefinitely.
When oranges increase in price, the income effect
A) decreases the consumption of oranges only if oranges are a normal good. B) decreases the consumption of oranges only if oranges are an inferior good. C) always increases the consumption of oranges. D) always decreases the consumption of oranges.