Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will
a. increase the supply of corn.
b. increase the supply of soybeans.
c. decrease the supply of soybeans.
d. decrease the supply of corn.
e. have no effect on the supplies of corn and soybeans.
C
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"Divisions" of a University The separate colleges within universities are often operated as profit centers. While a student takes courses throughout the university, the budget of a specific dean is based on the students it serves. Two models are 1)
basing funds on the number of student hours generated by a college and 2) basing funds on the number of students completing majors within the college. How do these two models affect the incentives for which courses included in the degree programs?
If fiscal policy is used to close an expansionary gap, the _____
a. short-run aggregate supply curve shifts leftward and the price level falls b. short-run aggregate supply curve shifts rightward and the price level increases c. short-run aggregate supply curve shifts rightward and the price level falls d. aggregate demand curve shifts leftward and the price level falls e. aggregate demand curve shifts rightward and the price level falls
The threat of substitutes is held constant in Porter's five forces model
Indicate whether the statement is true or false
In order to maximize profit, a firm that produces its output in two plants will allocate total output between the two plants so that
A. marginal cost for the firm is equal to the sum of the plants' marginal revenue. B. marginal cost is equal for the two plants. C. marginal revenue is equal for the two plants. D. both a and b E. all of the above