The inelastic demand for agricultural products means that:
A. Large changes in agricultural production result in no change in farm prices and incomes
B. Small changes in agricultural production result in no change in farm prices and incomes
C. Large changes in agricultural production result in relatively smaller changes in farm prices and incomes
D. Small changes in agricultural production result in relatively larger changes in farm prices and incomes
D. Small changes in agricultural production result in relatively larger changes in farm prices and incomes
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The figure above shows short-run cost curves for a perfectly competitive firm. If the price of the product is $8, in the short run the firm will
A) make zero economic profit. B) make an economic profit. C) incur an economic loss. D) None of the above answers is correct because more information is needed to determine the firm's economic profit or loss.
In our simple trade model, having a comparative advantage in a product implies that a country will specialize completely in the product
A) with the highest opportunity cost. B) with the lowest opportunity cost. C) where total output is lower per worker-hour. D) where total output is greater per worker-hour.
The individual firm maximizes its total profit by producing the level of output at which the difference between marginal revenue and marginal cost is as large as possible
Indicate whether the statement is true or false
Overfishing and extinction of species arise because of:
a. an abundance of natural resources. b. communist countries. c. the lack of incentive to take care of these species. d. private ownership of these resources. e. a high degree of economic freedom in all countries.