Andre, a wheat farmer, is deciding whether or not to add fertilizer to his crops. If he adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, Andre should add fertilizer if it costs less than
a. $12.50 per pound.
b. $20 per pound.
c. $80 per pound.
d. $100 per pound.
B
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Suppose that a perfectly competitive industry is in long-run equilibrium, and demand increases. Explain the short- and long-run effects on the firm and the industry
What will be an ideal response?
Coal producers cannot profit by acting opportunistically toward U.S. Steel because:
a. there is a wide range of coal producers and substitution possibilities are high. b. coal is a highly specific resource and trades at competitive prices. c. the company usually enters into a delivery contract to obtain coal. d. the market for coal is thin.
The larger a percentage of the population a person is, the ______________ likely that person will have to further engage with people she meets. This implies that she will generally be ____________ likely to behave unethically and poorly with the people in her town as the population of her town increases
A) more; less B) less; less C) more; more D) less; more
In recent years, China and India have prospered economically by introducing
A. a stronger central bank. B. more competition through markets. C. greater government intervention. D. more centralized planning.