ECO 561 Course Great Wisdom / tutorialrank.com ECO 561 Course Great Wisdom / tutorialrank.com | Page 10

Julia's to: A. raise their price and reduce their quantity supplied. B.
raise their price
and increase their quantity supplied. C. lower their price and increase
their
quantity supplied. D. lower their price and reduce their quantity
supplied.
7) If a firm in a purely competitive industry is confronted with an
equilibrium price
of $5, its marginal revenue: A. may be either greater or less than $5.
B. will also be
$5. C. will be greater than $5. D. will be less than $5.
8) If technology dictates that labor and capital must be used in fixed
proportions, an
increase in the price of capital will cause a firm to use: A. more labor
as a
consequence of the substitution effect. B. more labor as a
consequence of the output
effect. C. less labor as a consequence of the output effect. D. less
labor as a
consequence of the substitution effect.
9) If a firm is selling in an imperfectly competitive product market,
then: A. A.
average product will be less than marginal product for any number of
workers