What happens to equilibrium price if more suppliers enter the market?

What happens to equilibrium price if more suppliers enter the market?

A. it increases
B. it decreases
C.it does not change


Answer: B. it decreases

For an upward-sloping labor supply curve, there is an increase in the quantity supplied when the ______ increases.

For an upward-sloping labor supply curve, there is an increase in the quantity supplied when the ______ increases.

Answer: wage rate increases

Which of the following will decrease the market demand for labor?

Which of the following will decrease the market demand for labor?

A. An decrease in immigration
B.A decrease in the price of the product produced by labor
C.An increase in labor productivity
D. A decrease in wage rate


Answer: C.An increase in labor productivity

Which of the following will increase the market demand for labor?

Which of the following will increase the market demand for labor?

A.the market demand curve shifts to the right
B. a decrease in the number of available workers
C.An increase in the wage paid to labor


Answer: C.An increase in the wage paid to labor

When firms exit a market, all of the following occurs except

When firms exit a market, all of the following occurs except

A. The market demand curve shifts to the right
B.The market supply shifts to the left
C.The equilibrium price level rises


Answer: B.The market supply shifts to the left

Which of the following represents a change in the quantity demanded?

Which of the following represents a change in the quantity demanded?

A.People buy more computers as prices fall
B.People buy more computers due to a change in income
C.People buy more computers due to a change in tastes


Answer: C.People buy more computers due to a change in tastes

Which of the following is most likely a variable cost in the short run?

Which of the following is most likely a variable cost in the short run?

A.Labor
B.Rent
C.A business license


Answer: A.Labor

If a perfectly competitive firm sells 30000 eggs at 1.25 each and wants to sell one more, the firm:

If a perfectly competitive firm sells 30000 eggs at 1.25 each and wants to sell one more, the firm:

Answer: Cannot sell bc there are other egg farmers in the market

A firm should continue to higher workers until the_____ is equal to the ___________

A firm should continue to higher workers until the_____ is equal to the ___________

Answer: MRP is equal to the wage rate

The labor demand curve slopes __________ and to the right which means that quantity of labor demanded will increase as the wage rate__________.

The labor demand curve slopes __________ and to the right which means that quantity of labor demanded will increase as the wage rate__________.

Answer: downward, increases

A perfectly competitive firm:

A perfectly competitive firm:

A.can sell more output only if it reduces its price
B. Can sell some output at a price above the market price
C.Can sell all of its output at the prevailing market price


Answer: C.Can sell all of its output at the prevailing market price

If a good is inferior, then an increase in income will cause the demand curve to

If a good is inferior, then an increase in income will cause the demand curve to

A. Shift right
B.stay the same
c. Rotate inward
D. shift left


Answer: A. Shift right

A firm can be identified as profitable if the:

A firm can be identified as profitable if the:

A. Sum of total revenue and costs is high
B.Difference between its total revenue and total costs is negative
c. total costs and marginal costs are low
d. difference between its total revenue and total costs is positive


Answer: d. difference between its total revenue and total costs is positive

Which of the following is a factor for production for Cathy's Cookies?

Which of the following is a factor for production for Cathy's Cookies?

A. Flour
B.Money
C.Productivity
D.Cookies


Answer: C.Productivity

A monopolistically competitive firm maximizes its profit or minimizes losses in the short run by:

A monopolistically competitive firm maximizes its profit or minimizes losses in the short run by:

A.Producing at the output level where MR=MC
B. P A T O L W ATC is minimized
C. P A T O L W MC =ATC


Answer: A.Producing at the output level where MR=MC

Suppose a perfectly competitive firm increases its output. In order to sell this additional output, the firm:

Suppose a perfectly competitive firm increases its output. In order to sell this additional output, the firm:

A.Must lower its price to see the additional output
B.Should price it at the market price
C.Will not be able to sell the additional output at any price because of the many competitive firms


Answer: C.Will not be able to sell the additional output at any price because of the many competitive firms

Competitive firms cannot individually affect market price because

Competitive firms cannot individually affect market price because

A. There is an infinite demand for their goods
B.The market demand curve is flat or horizontal
C.The gov excercises control over the market power of competitive firms


Answer: B.The market demand curve is flat or horizontal

A firms demand for labor is referred to as a derived demand because it is derived from the:

A firms demand for labor is referred to as a derived demand because it is derived from the:

A.Demand for the product that labor produces
B.SUpply of labor
C.Wages labor recieves from the firm
D.Marginal physical product of labor


Answer: D.Marginal physical product of labor

If the first, second, third, and forth worker employed by the firm add 15, 21, 12, and 8 units of total product respectively, we can conclude that:

If the first, second, third, and forth worker employed by the firm add 15, 21, 12, and 8 units of total product respectively, we can conclude that:

A. THe marginal product of all four workers is 14
B. THat after the second worker marginal product declines
c.the total of two product workers is 42


Answer: B. THat after the second worker marginal product declines

The market equilibrium price and equilibrium quantity have decreased. This could be happening because

The market equilibrium price and equilibrium quantity have decreased. This could be happening because

A.technology is rapidly increasing
B. Factor prices are rising
C.income has fallen for a normal good


Answer: C.income has fallen for a normal good