If the perfectly competitive wiffle ball industry is bearing economic losses, we would expect that:
a. output will increase, the price of wiffle balls will rise, and the economic losses would tend to disappear.
b. output will decrease, the price of wiffle balls will fall, and the economic losses would tend to increase.
c. output will decrease, the price of wiffle balls will rise, and the economic losses would tend to disappear.
d. output will increase, the price of wiffle balls will fall, and the economic losses would tend to disappear.
c
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For a given amount of nominal income, the real income will
A. rise as the price level rises. B. fall if the price level falls. C. fall if the price level rises. D. be unaffected if the price level falls.
By opening up to foreign markets two things countries generally experience are:
A. access to a smaller array of new products and saving money through access to cheaper goods. B. access to a smaller array of new products and increase in negative trade outcomes with that nation. C. saving money through access to cheaper goods and finding new customers for their products. D. increase in negative trade outcomes with that nation and finding customers who generally pay less for their products.
The price for labor is the wage rate. What happens to the supply of labor if wages increase?
a. It increases. b. It decreases. c. It does not change. d. Uncertain-economic theory has no answer to this question.
Which of the following best describes consumer surplus?
a) The price consumers are willing to pay for a unit. b) The cost of providing a unit. c) The profits made by a firm. d) The difference between the price a consumer pays for an item and the price he/she is willing to pay.