An increase in which of the following variables should cause an increase in profit per unit of capital?
A) total wages and salaries
B) total sales
C) the capital stock
D) the ratio of total sales to the capital stock
E) the ratio of total sales to total wages and salaries
D
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A television station reports that the price of orange juice has declined but the quantity sold has increased. This situation would be caused by a(n):
a. Increase in demand b. Increase in supply c. Decrease in supply d. Decrease in demand
Which of the following statements describes a perfectly competitive market under conditions of constant cost?
A) The market supply curve becomes perfectly elastic in the long run. B) The market rarely experiences changes in the price and quantity sold in the short run. C) If 50 units can be produced for $150, then 150 units can be produced for $350 and 200 units for $450. D) The market rarely experiences changes in supply in response to changes in demand.