Under conditions of perfect competition, AR and MR
a. are represented by a straight vertical line.
b. diverge.
c. are represented by a straight horizontal line.
d. are represented by an upward sloping line.
c. are represented by a straight horizontal line.
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What is price leadership?
What will be an ideal response?
A direct tax
a. can be shifted forward. b. can be shifted backward. c. cannot be shifted. d. has to be proportional.
Which of the following is true about the market supply for resources?
a. The market supply curve of a resource reflects the maximum willingness-to-pay for all firms purchasing resources in the resource market. b. The market supply curve of a resource is derived from the value of the final goods and services produced with the resource. c. The market supply curve of a resource slopes upward because higher resource prices draw resources from lower-valued uses, and because suppliers are able to supply more of the resource at a higher price. d. The market supply curve of a resource slopes downward because suppliers are able to supply less of the resource at a higher price.
In 2005 Hurricane Katrina hit the Gulf Coast and especially the city of New Orleans. Most oil production off the Gulf Coast came to a halt. If the impact of this was to reduce oil production by 10% and the Eo for oil was -0.2, what was the likely % change in oil prices as a result?
a) +10% b) +2% c) +5% d) +50% e) +20%