Corn is produced in a perfectly competitive market. The demand for ethanol decreases. This will cause the individual corn farmer?s marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: D
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A rightward shift of the Mexican demand curve for foreign exchange will
a. decrease the price of foreign exchange in Mexico b. increase the value of the peso c. make foreign goods less expensive in terms of pesos d. make foreign goods more expensive in terms of pesos e. make Mexican goods more expensive in terms of foreign exchange
Barriers to entry into oligopoly industries can be the result of patents, ownership of key resources, large start up costs, or pronounced economies of scale
a. True b. False Indicate whether the statement is true or false
Even if economic theory is based on positive analysis, economists may still disagree with each other because
a. economists tend to have excessive self-interest b. they ignore politics c. they are opinionated d. they may have different values, like everyone else e. they try to be right all the time
If the four-firm concentration ratio for an industry is 84 percent, then
A. the four largest firms in the industry account for 16 percent of the total sales. B. the four largest firms in the industry account for 84 percent of the total sales. C. the remaining firms in the industry accounts for 84 percent of the total sales. D. each of the firms account for 21 percent of total sales.