Why was OPEC unable to maintain high oil prices in the long run?
a. Demand and supply are both elastic in the long run compared to the short run.
b. Demand and supply are both inelastic in the long run compared to the short run.
c. Demand is elastic and supply is inelastic in the long run compared to the short run.
d. Demand is inelastic and supply is elastic in the long run compared to the short run.
a
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The price of apples is currently $1 per pound. If apples are sold in a competitive market and the price of apples increases to $2 per pound, the marginal revenue product (MRP) of labor used to produce apples would
A. double. B. change in a manner that cannot be determined without additional information. C. be cut in half. D. not change.
This chapter explains that a firm that engages in second-degree price discrimination charges the same consumer different prices for different units of a good. You are a monopolist with many identical customers
Each will buy either zero, one, or two units of the good you produce. A consumer is willing to pay $50 for the first unit of this good and $20 for the second. You produce this good at a constant average and marginal cost of $5 . For simplicity, assume that if a consumer is indifferent between buying and not buying that he will buy. a. If you could not engage in second-degree price discrimination, what price would you charge? How much profit per customer would you earn? b. Suppose you offer your customers what seems to be a very generous deal: "Buy one at the regular price of $50, and get 60 percent off on a second." How many units of this good will each customer buy? How much profit per customer will you earn?
The environmental Kuznets curve suggests that
a. the environment deteriorates with development b. the environment deteriorates up to some level of GDP then improves c. open economies have less environmental problems d. low-income countries have more environmental problems e. none of the above
In economic terms, “productivity” means the number of goods and services ______
a. a worker can produce per hour b. the fastest worker produces per hour c. produced per full-time employee d. sold in an economy per year