Use a supply and demand graph to explain why the rent on land is demand determined
What will be an ideal response?
The equilibrium rent is determined by the placement of the demand curve. When demand is D1, the equilibrium rent is R1 . When demand rises to D2, the equilibrium rent rises to R2 . The supply of land is perfectly inelastic.
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As more people started using fax machines, fax machines became more valuable to individual users. This is an example of a(n) ________
A) moral hazard B) adverse selection C) network externality D) negative externality
Explain how it is possible for marginal product to fall while average product is rising?
What will be an ideal response?
Pure monopolies are said to be allocatively inefficient because ________.
A. price is greater than marginal cost B. they produce where MR > MC C. price is less than marginal cost D. price is equal to marginal cost
Refer to the given data. Assume the production possibilities in Beta double at alternatives A through E while remaining as shown in the table for Alpha. As a result, Beta should:
Answer the question on the basis of the following production possibilities data for two countries, Alpha and Beta, which have populations of equal size.
A. continue to specialize in producing chips.
B. continue to specialize in fishing.
C. no longer specialize and trade.
D. specialize both in fishing and in producing chips and sell the surplus to Alpha.