Ceteris paribus, if the corn crop is 15 percent larger this year than it was last year, farmers will have to ________ the price of corn by ________ to sell the new crop.
A. reduce; exactly 15 percent
B. raise; more than 15 percent
C. reduce; more than 15 percent
D. reduce; less than 15 percent
Answer: C
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Suppose that we find that student grades and time spent at parties move in opposite directions. A graph of the relationship between these two variables would curve
A) upward and be linear. B) upward and may be linear or nonlinear. C) downward and be linear. D) downward and may be linear or nonlinear.
The implications of the zero economic profit condition in a perfectly competitive market implies that the opportunity cost of capital is integrated into the firm’s cost relationships.
Answer the following statement true (T) or false (F)
For a nondiscriminating monopolist, which of the following statements is true?
a. Unlike a firm in perfect competition, a monopolist produces where MR > MC. b. The monopolist's marginal revenue curve is the same as its demand curve. c. The monopolist will always produce in the inelastic range of its demand curve. d. The monopolist does not have a supply curve. e. The monopolist produces where MR < MC.
Market failure occurs when
A. the price system fails to generate an efficient allocation of resources. B. the price system allows consumers to make their own decisions. C. the price system fails to generate an equal distribution of wealth. D. the price system fails to generate an equal distribution of income.