Farmer John can produce as much corn as he wants at the going price of $48 per bushel. At his current production level, the marginal cost is $18 . What should the company do?
a. Increase production
b. Decrease production
c. Stay at this level of production
d. None of the above
a
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As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. As a result, she loses half of her productive farmland. If the property of diminishing returns applies to all factors of production, she should expect to see the marginal productivity of her remaining land
a. increase. b. remain unchanged. c. decrease but remain positive. d. decrease and become negative.
If we were on curve K, the upper two quintiles received about _____% of income.
A. 25
B. 35
C. 45
D. 55
The one exception to the rule that you are not getting ripped off if you pay a very high price for a good or service is if there is ____________.
Fill in the blank(s) with the appropriate word(s).
Goods X and Y are complementary goods. A decrease in price of good X has occurred. In the market for good Y, this will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.