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Unformatted text preview: D. Four hours 3. A supply schedule is upward sloping because at higher prices A. Customers are willing to pay more for the good. B. Firms perceive that the marginal cost of producing the good has increased. C. Firms perceive that the marginal benefit of producing the good has increased. ** D. Customers switch to substitute goods. 4. The firm in a competitive industry perceives its demand schedule to be horizontal because it… A. Has a substantial control over its price. B. Can sell only a certain amount of the good as if there were a quota. C. Can sell as much as it wants at the market price. ** D. Has a constant marginal cost of production....
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This note was uploaded on 03/02/2009 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.
- Spring '07