11- Which of the following would cause the short-run market supply curve to shift inward? Select one: a. a fall in input prices b. government regulations that raise each firm's marginal cost of productionprice c. an increase in each firm's fixed cost d. both b and c

11- Which of the following would cause the short-run market supply curve to shift inward? Select one: a. a fall in input prices b. government regulations that raise each firm's marginal cost of productionprice c. an increase in each firm's fixed cost d. both b and c

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 1PA

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18. The firm's short-nun supply curve will be: The marginal cost curve b. The marginal cost curve from a and above C The marginal cost curve fromb and above dThe marginal cost curve from d and above 2.
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4. Profit maximization in the cost-curve diagram A Consider a perfectly competitive market for shirts. The following graph shows the daily cost curves of a firm operating in this market. PRICE Dollars per sht 20 HE 16 12 34 LE AD 72 OUTPUT (Theunts of shirts! Chow Ad In the short run, at a market price of $185 per shirt, this firm will choose to produce shirts per day. On the previous graph, use the blue rectangle (dirde symbols) to shade the area representing the firm's economic profit or loss if the market price is $18 and the firm chooses to produce the quantity you already selected. Tool tip: Mouse over the shaded region on the graph to see its area. The area of this rectangle indicates that the firm would have per day. For each price in the following table, calculate the firm's optimal quantity of units produced and determine the economic profit or loss if it produces at that quantity. Use the data from the previous graph to identify its total variable cost. Assume that if the…
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