1. Which of the following, in perfect competition, is most likely to shift a market’s supply curve to the right? The number of consumers decreases. The number of suppliers decreases. There is an improvement in production technology. The price of a substitute good increases. 2. Which of the following gives an example of an implicit cost for a bakery? The cost of flour used to make bread Bakeries have no implicit costs because they are monopolistically competitive. The foregone payments that could have been earned by renting out the bakery’s storefront to another firm The wages the bakery pays to its employees 3. A producer knows that the price elasticity of demand for his product is -0.67. He wants to increase quantity demanded by 33%. By what percentage does he need to change the price? -0.221 -2.03 -0.493 0.493
1. Which of the following, in perfect competition, is most likely to shift a market’s supply curve to the right? The number of consumers decreases. The number of suppliers decreases. There is an improvement in production technology. The price of a substitute good increases. 2. Which of the following gives an example of an implicit cost for a bakery? The cost of flour used to make bread Bakeries have no implicit costs because they are monopolistically competitive. The foregone payments that could have been earned by renting out the bakery’s storefront to another firm The wages the bakery pays to its employees 3. A producer knows that the price elasticity of demand for his product is -0.67. He wants to increase quantity demanded by 33%. By what percentage does he need to change the price? -0.221 -2.03 -0.493 0.493
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
1. Which of the following, in
The number of consumers decreases.
The number of suppliers decreases.
There is an improvement in production technology.
The price of a substitute good increases.
2.
Which of the following gives an example of an implicit cost for a bakery?
The cost of flour used to make bread
Bakeries have no implicit costs because they are monopolistically competitive.
The foregone payments that could have been earned by renting out the bakery’s storefront to another firm
The wages the bakery pays to its employees
3.
A producer knows that the
-0.221
-2.03
-0.493
0.493
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