Question

Please answer the following questions

The following are correct descriptions about the Supply Curve for certain good X, EXCEPT:

Question 13 options:

	A) It is the minimum price producers are willing to accept for any unit produced of good X.
	B) It reflects the segment of production with decreasing marginal cost.
	C) Reflects the optimal level of production for any given Px.
	D) Reflects the producer's decision to produce up to the point where market price equals marginal cost of production.

The following factors could likely Shift Down the Supply Curve for certain good X,  EXCEPT:

Question 14 options:

	A) A decrease in the cost of labor used in production of good x.
	B) A technological innovation in production of good x.
	C) An increase in the market price for an alternative product Pw.
	D) An increase of subsidies on production of good x.

In theoretical terms, the following are key characteristics of the Market Equilibrium, EXCEPT:

Question 16 options:

	A) It is Pareto Optimal.
	B) It is Efficient.
	C) It is Unstable.
	D) It is Unique.

The following are assumptions behind the Free Market Model of Demand and Supply, EXCEPT:

Question 17 options:

	A) Individuals are rational.
	B) Individuals have initially equal amount of economic resources available.
	D) Market contracts can be self-enforced
	C) There are no externalities.

Answer 1

13. All statements are correct about the supply curve for certain good X except it reflects the segment of production with decreasing marginal cost. Hence, option(B) is correct.

14. All would increase the supply means shift down the supply curve for good x except an increase in the market price for an alternative product Pw. Hence, option(C) is correct.

16. All are key characteristics of market equilibrium except that it is unstable. Hence, option(C) is correct.