The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price is $1,000 for a ton of turnips. In the long run, the market supply of turnips will ________
A) decrease and the price of a ton of turnips will fall to $600
B) increase and the turnip grower's economic profit will increase
C) increase and the turnip grower's economic profit will decrease
D) decrease and the price of a ton of turnips will rise to $1,200
D
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. The mixed-strategy equilibrium in this zero-sum game occurs when
A) each player plays a pure strategy. B) one player plays a pure strategy and the other plays a mixed strategy. C) both players play their ideal mixtures. D) There is never an equilibrium in a zero-sum game.
When is an individual said to have single-peaked policy preferences?
What will be an ideal response?
Suppose that a hog-producing firm has been dumping its wastes into the local river. The government taxes the sale of hogs to pay for the cost of the river cleanup. As a result
a. more hogs are produced and the price falls b. more hogs are produced and the price increases c. fewer hogs are produced and the price falls d. fewer hogs are produced and the price increases e. quantity produced doesn't change but the price increases
Which monetary policy would most likely increase aggregate demand?
a. Increasing the discount rate b. Increasing margin requirements on stock purchases c. Increasing reserve requirements at commercial banks and thrift institutions d. Purchasing government securities in the open market