The Prices of Raw Materials Increase in a Purely Competitive

question 72

Multiple Choice

The prices of raw materials increase in a purely competitive industry. This change will result in a(n)

• A)decrease (downward shift)in the average total cost curve for firms in the industry.
• B)decrease (downward shift)in the marginal revenue curve for firms in the industry.
• C)increase (upward shift)in the marginal cost curve for firms in the industry.
• D)increase (rightward shift)in the short-run supply curve for firms in the industry.

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Definitions:

Unemployment Statistics

The data and analysis regarding the percentage of the labor force that is jobless and actively seeking employment.

Frictional Unemployment

A form of unemployment that occurs when people are between jobs or within the workforce for a short period, often due to transitions or searching for a job that better matches their skills.

Structural Unemployment

A form of unemployment caused by a mismatch between the skills held by the unemployed population and the skills demanded by the prevailing job market.

Cyclical Unemployment

Unemployment that rises during economic downturns and falls when the economy improves, linked to business cycles.