Econ 203 quiz 3 - Study guides, Class notes & Summaries

Question 1 1 / 1 point The ________________ arises when a price changes because consumers have an incentive to consume less of the good with a relatively higher price and more of the good with a relatively lower price. a)  preferences effect b)  substitution effect c)  income effect d)  backward-bending supply curve Question 2 1 / 1 point Marginal utility can: a)  increase positively, but not negatively b)  be positive or negative, but not zero c)  ...

Quiz Submissions - Quiz #2 ~ ECON 203   Chapter 8 Question 1 1 / 1 point If a firm's revenues do not cover its average variable costs, then that firm has reached its _________________ . a)  price taking point b)  shutdown point c)  opportunity margin d)  marginal point Chapter 8 perfectly competitive market, Question 2 1 / 1 point If a perfectly competitive firm is a price taker, then a)  pressure from competing firms will force acceptance of the preva...