Assume soybeans are produced in a perfectly competitive market. A soybean farmer is currently maximizing his profits. If the market price of soybeans falls, after the farmer adjusts to the new price, he will be producing ________ bushels of soybeans, and his profit will be ________.
A. fewer; the same
B. more; the same
C. fewer; lower
D. the same number of; the same
Answer: C
You might also like to view...
If a production function is represented as q = L? K?, the long-run average cost curve will be horizontal as long as
A) ? + ? = 0. B) ? + ? = 1. C) q > 0. D) L = K.
According to Keynesians, an increase in the money supply will have its least impact on GDP when the aggregate demand curve intersects:
a. the horizontal portion of the aggregate supply curve. b. the vertical portion of the aggregate supply curve. c. the upward sloping portion of the aggregate supply curve. d. either the horizontal or upward sloping portion of the aggregate supply curve. e. either the horizontal or upward sloping portion of the aggregate supply curve.
A division of labor enhances society's output by permitting people to take advantage of existing differences in their abilities and skills.
Answer the following statement true (T) or false (F)
A good that is rival but nonexclusive is called a(n) ?
a. private good
b. public good
c. quasi-private good
d. external good
e. open access good