In the short run for a particular market, there are 5,000 firms. Each firm has a marginal cost of $7 when it produces 200 units of output. One point on the market supply curve is
a. quantity = 5,000 . price = $7.
b. quantity = 35,000 price = $35,000.
c. quantity = 1,000,000 . price = $7.
d. quantity = 1,000,000 . price = $35,000.
c
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Rembrandt paintings are expensive and not as vital for life as milk, which is cheap
Marginal utility theory explains this paradox of value: The total utility from a Rembrandt painting is ________ than the total utility from milk, and the marginal utility from a Rembrandt painting is ________ than the marginal utility from milk. A) smaller; smaller B) smaller; larger C) larger; smaller D) larger; larger
Between 2017 and 2018, the CPI of a small nation rose from 182 to 185. If household incomes rose by 3% during that period of time, which of the following is true?
A) The purchasing power of household income rose between 2017 and 2018. B) The purchasing power of household income fell between 2017 and 2018. C) The purchasing power of household income remained constant between 2017 and 2018. D) The CPI cannot be used to determine how the purchasing power of household income changes over time.