Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
If firm sales (revenue) is increasing but costs are increasing faster (MR<MC) then: |
Answer: "Y" for Yes or "N" for No | |||
How are the following measures affected?
*assume the following effects are in time order
|
Increase (right) | Decrease (left) | No effect | Unknown |
Preference for the good being sold
|
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Firm Profits
|
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Output Supply shifts
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Output market price
|
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Factor demand shifts (relative to output)
|
||||
Wages (income)
|
||||
Economic (Consumer) Welfare due to wage effect
|
||||
Labor supply shifts (due to wages)
|
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Leisure (due to wage change)
|
||||
Economic (Consumer) Welfare (overall)
|
||||
Demand for substitute goods
|
||||
Preference for related goods |
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