Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at 20¢ per pound when 500 pounds are grown. If the long-run supply curve is horizontal, then
A) some firms will enjoy long-run profits because they operate at minimum average cost.
B) the long-run price will be 20¢ per pound.
C) each consumer will purchase $100 worth of potatoes.
D) the long-run price will be set just above 20¢ per pound.
B
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The Federal Open Market Committee oversees the money supply through the purchase and sale of government securities
a. True b. False Indicate whether the statement is true or false
Suppose that a competitive firm's marginal cost of producing output q is given by MC = 5 + 2q. Assume that the market price of the firm's product is $27. What level of output will the firm produce?
What will be an ideal response?
A nation can gain from imposing a tariff on imports if it forces exporting countries
A. to raise their prices to pay the tariff. B. to lower their prices to avoid stocks of unsold goods. C. to produce at diseconomies of scale. D. to accept some imports from the tariff-imposing nation.
The so-called collective action problem refers to the:
A. Problems faced by organizers in setting up a labor union B. Challenges faced by business when they have to deal with a labor union C. Inability of the government to discern the true preferences of everyone in society D. Greater difficulty in organizing and motivating large groups than small ones