The minimum price the firm would accept in the short run would be
A. $25.
B. $50.
C. $70.
D. $80.
B. $50.
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The problem typically during a recession is not that there is too little money, but too little spending. If the problem was too little money, what would be its cause? If the problem was too little spending, what could be its cause?
What will be an ideal response?
The addition to revenue obtained from firing an additional unit of labor is
A) total product. B) marginal revenue product. C) marginal factor cost. D) marginal physical product of labor.
If the government wanted a tax to not burden producers much, it would want to tax an industry with
a. elastic supply and demand curves. b. inelastic supply and demand curves. c. inelastic supply and elastic demand. d. elastic supply and inelastic demand.
Answer the following statement(s) true (T) or false (F)
1. You can often predict people’s behavior if you know what their incentives are. 2. Lower prices are negative incentives to producers but positive incentives to consumers. 3. Positive incentives are generally considered more effective than negative incentives. 4. An absolute advantage occurs when a person, a region, or country can produce a good or service at a lower opportunity cost than others.