Firms must typically purchase inputs from suppliers to produce output. what effect might suppliers have on an industry? a. suppliers cannot affect output markets, although an output market with only a few firms is likely to have the bargaining power to limit a supplier's profits. b. if an input is specialized comma then the supplier is unlikely to have the bargaining power to limit a firm's profits. c. if suppliers are price takers, then a firm will likely be a price taker with no ability to raise price. d. if only a few firms can supply an input, then markets will likely experience shortages because firms are unable to produce sufficient output. e. if many firms can supply an input comma then suppliers are unlikely to have the bargaining power to limit a firm's profits.

6. why the aggregate supply curve slopes upward in the short run in the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. several theories explain how this might happen. for example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. consider a soybean farmer who expects a price level of 100 in the coming year. if the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. if other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.