Tim Tupper Contracts with Two Other Students to Help Him

question 88

Multiple Choice

Tim Tupper contracts with two other students to help him provide a term paper-typing service.In the last two weeks of the semester, he sees a tremendous increase in demand.His profit-maximizing response would be represented by

• A)a rightward shift of the supply curve because it is possible to earn economic profits
• B)a rightward shift of the supply curve because the increase in demand is probably only temporary
• C)a reduction in supply to take full advantage of the increase in demand
• D)a movement up to the right along the supply curve because the increase in demand is probably only temporary
• E)an upward movement in horizontal demand curve he faces because now he can charge a lower price

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Definitions:

Principal Diagnosis

The principal diagnosis is the primary condition determined after study to be chiefly responsible for a patient's admission to a hospital for care.

Principal Diagnosis

The main condition diagnosed at the end of a hospital stay or health care encounter that primarily motivated the treatment.

ATC

Average Total Cost, the sum of all costs divided by the quantity of output produced, a key concept in economics for understanding profitability at different production levels.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing full industry adjustment.