The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound, the production of cherries in the United States will equal
A) 200,000 pounds.
B) 400,000 pounds.
C) 600,000 pounds.
D) 800,000 pounds.
E) 0 pounds.
C
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Identify the reasons why the quantity demanded of a product increases as the price of that product decreases
a. as the price declines, the real income of the consumer increases b. as the price of product A declines, it makes it more attractive than product B c. as the price declines, the consumer will always demand more on each successive price reduction d. a and b e. a and c
In the two-period utility maximization model the opportunity cost of one unit of C1 is
a. one unit of C0. b. 1 + r units of C0. c. 1/(1 + r) units of C0. d. cannot be determined without more information.
"There should be less discrimination against the elderly." This is an example of a
a. normative statement b. positive statement c. forecast d. hypothesis e. prediction
Which of the following is unique to perfect competition?
a. The individual firm cannot earn economic profit in the long run. b. It is easy for new firms to enter the industry. c. The market demand curve slopes downward. d. The demand curve facing an individual firm is perfectly elastic. e. The firms in the industry produce a homogeneous product.