If input prices rise as industry output expands, then a perfectly competitive firm's marginal cost and average cost curves will:
a. shift upward.
b. shift downward.
c. not shift. As the firm increases production, however, costs increase as the firm moves upward to the right along these curves.
d. not shift. As the firm increases production, however, costs decrease as the firm moves downward to the left along these curves.
Question 2
Which of the following is true of transfer programs?
a. They involve redistributing income from lower-income individuals to higher-income individuals.
b. They place a high implicit tax on work.
c. They increase the opportunity cost of leisure.
d. They indirectly help in decreasing the unemployment rate in an economy.
e. They result in an increased productivity of labor and a rise in the total output of an economy.
Sunlight shining through clouds, giving rise to crepuscular rays.
Solar output
A rise in global temperature of more than 3˚C
Possible Sources of Differences in Output per Worker
Calculator Output
Competitive firms and maximization