--%>

Short run expectations

Can someone help me in finding out the right answer from the given options. When Toyota expected the price at which it could sell its cars to increase in the near future, it’s very short-run response would possibly be to: (i) Raise its supply. (ii) Reduce its supply. (iii) Raise its quantity supplied. (iv) Reduce its quantity supplied.

   Related Questions in Microeconomics

  • Q : Product markets and labor markets

    Relative to firms which are price takers in both the product markets and labor markets, firms through market power in both the product markets and labor markets tend to. (1) Hire fewer workers and pay them less. (2) Rely more heavily on the screening and signaling thr

  • Q : Function of negative economic profits A

    A function of negative economic profits is to: (w) attract new firms into the industry. (x) keep competition within. (y) signal to other firms to invest their capital into this industry. (z) correct resource allocations by forcing firms generating los

  • Q : What is the equilibrium price For each

    For each case listed below, first state whether the change results in an increase or a decrease in demand, or in an increase or a decrease in supply.  Second, determine the direction of change in both the equilibrium price and the equilibrium quantity. a.     

  • Q : Explain the term PHP Explain the term

    Explain the term PHP?

  • Q : Problem on Closed Shops Can someone

    Can someone please help me in finding out the accurate answer from the following question. The firm which operates beneath a closed shop agreement: (i) Produces more gains than the firm beset through union strikes. (ii) Is less beneath organized labor's control than t

  • Q : Wage rate in equilibrium for monopsony

    Marginal revenue product of the labor surpasses the: (i) Additional revenue generated by each extra unit of labor. (ii) Value of marginal product of labor merely for the competitive sellers of output. (iii) Average fixed cost for natural monopoly. (iv

  • Q : Profit Maximization in Labor Markets

    Each and every profit maximizing organizations employ labor up to the point where: (1) VMP = w. (2) MRP = MFC. (3) VMP = MRP. (4) VMP = MFC. (5) MR MC is maximized. Can someone please help me in finding out the accurate answer from

  • Q : Competitive Markets-Unions of labor Can

    Can someone please help me in finding out the accurate answer from the following question? The purely competitive labor markets are not characterized through: (w) Most of the individual buyers and sellers of the labor services. (x) Wages equivalent to the marginal res

  • Q : Constant price in economic rent

    Economic rent is: (1) determined by the supply side. (2) independent of the strength of demand. (3) received whenever owners receive a constant price for a resource that supply curve is upward sloping. (4) included in society's opportunity costs of pr

  • Q : Economic cost Economic cost can best be

    Economic cost can best be defined as: A) any contractual obligation that results in a flow of money expenditures from an enterprise to resource suppliers. B) any contractual obligation to labor or material suppliers. C) compensations that must be received by resource owners to insure their continued