Initially the beef and mutton markets are in equilibrium, then preferences shift away from beef and into mutton. If you are a cattle rancher, the best profit-maximizing strategy is to
A. shift some of your ranching capacity into cattle raising.
B. decrease output so as to minimize short run losses.
C. increase output so as to increase your market share.
D. shut down.
Answer: B
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Suppose a fishing boat currently brings 10,000 fish to market and earns a profit of $40,000 when the price of fish is $8 . Suppose the boat dealer had overcharged the boat owner for the boat and refunded the overcharged amount. If the profit increases to $7.50 per fish, what was the value of the refund from the dealer?
a. $2.50 b. $25,000 c. $3.50 d. $35,000 e. $75,000
What factors explain the high level of level of productivity in the United States?
What will be an ideal response?
Assume that the real GDP of a developing nation increases from $120 billion to $140 billion while its population expands from 100 to 110 million. As a result, real GDP per capita has increased by about ________.
A. $64 per person B. $88 per person C. $72 per person D. $56 per person
During the year a country's income was $6.0 trillion and its consumption was $5.5 trillion. At the start of the year its wealth was $30.0 trillion. The country's wealth at the end of the year was
A) $36.0 trillion. B) $35.5 trillion. C) $30.0 trillion. D) $6.0 trillion. E) $30.5 trillion.