For a given seller, the accompanying figure shows the relationship between the number of units produced and the opportunity cost of producing an additional unit of output. As the market price of this good increases, the quantity produced by this seller will ________.
A. increase
B. stay the same until the price rises above $6 per unit, and then it will increase
C. decrease
D. stay the same
Answer: A
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Mike’s Mealbarn is a competitive firm in the hot dog stand business. How will each of the following affect the short-run demand for labor at Mike's?
(i) Mike buys a new grill that makes the cooks more productive. (ii) Increasing numbers of people become vegetarians. (iii) A health inspector fines Mike $500 for unsanitary conditions, but fortunately Mike's customers don't learn about it.
Economic growth tends to be higher in a country that
A) has an open economy that encourages the rapid spread of technology. B) does not grant patents to investors. C) has a low saving rate. D) has an undeveloped system of property rights.
A fish hatchery raises brook trout and rainbow trout. An increase in the market price of brook trout therefore tends to
A) reduce the demand for brook trout. B) increase the hatchery's cost of raising rainbow trout. C) increase the demand for brook trout. D) decrease the hatchery's cost of raising rainbow trout.
Suppose the price of tomatoes dramatically increases. Which of the following could cause this change?
A. A news report stating that a pesticide used on tomatoes might cause cancer, shifting the demand to the right B. Hurricanes during the late summer damage the Florida crop, shifting supply left C. Advertising for ketchup increases demand for ketchup, shifting the demand curve to the left D. A reduction in tariffs of tomatoes from Central American, shifting supply right