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3 Output, Price, and Profit in the Short Run

Question 254

Multiple Choice

3 Output, Price, and Profit in the Short Run
-If there are 1,000 rutabaga farms, all perfectly competitive, an increase in the price of fertilizer used for growing rutabagas will


A) have no effect on the total quantity of rutabagas supplied, because no farm has enough market power to raise the price.
B) have no effect on the total quantity of rutabagas supplied, because each farm's supply curve is a vertical line.
C) decrease the total quantity of rutabagas supplied, because each farm's supply curve shifts leftward.
D) reduce the total quantity of rutabagas supplied, because each farm's supply curve is a horizontal line and will shift upward.

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