If the government raised land taxes $20/acre, this would increase the farmer's average fixed cost. How would that affect (a profit maximizing) farmers' decision about the quantity of corn to produce in the short run?
a. It would have little change because in the short run the farmer will consider only the Average Variable Cost (AVC) in making a decision on quantity supplied
b. It will decrease the quantity the farmer is willing to supply because the Average Variable Cost (AVC) will increase for the farmer
c. It will decrease the quantity the farmer is willing to supply because the farmer considers all costs in the short run in making a decision about quantity supplied
d. None of the above
a. It would have little change because in the short run the farmer will consider only the Average Variable Cost (AVC) in making a decision on quantity supplied
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If devaluation improves only the BOP, rather than the BOT, this implies that the capital account must have improved following a devaluation
Indicate whether the statement is true or false
Which retail operation would have the highest costs per book sold?
A. A small independent bookstore B. A large retail bookstore chain C. An Internet seller of books D. The Internet seller and retailer
When people make decisions on the basis of the face value of currency rather than the real value, their decisions reflect
A. The wealth effect of inflation. B. The income effect of inflation. C. Money illusion. D. The price effect of inflation.
As Tabitha consumes more ice cream sundaes within a given period of time, it is likely that each additional sundae consumed will
A. increase her quantity demanded for ice cream sundaes. B. bring her successively more satisfaction. C. bring her successively less satisfaction. D. increase the supply of ice cream sundaes.