Wheat farmers in Kansas would benefit from a devastating crop failure in North Dakota (another major wheat-producing state) if the U.S. demand for wheat is
a. inelastic
b. elastic
c. unit elastic
d. downward sloping
e. perfectly elastic
A
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Suppose the market for bottled water is served by two oligopolists. If they reach an agreement to restrict production and charge a price above marginal cost, then:
A. neither firm will have an incentive to cheat on the agreement since it benefits them both. B. their agreement is likely to eventually collapse. C. they will charge a higher price than a monopolist would have charged. D. they will earn a larger profit than a monopolist would have earned.
Refer to the table below. If these are the only four price options for a pound of sugar, what is the expected value the price of a pound of sugar?
The above table provides the possible prices for a pound of sugar next year along with the associated probabilities (in percent).
A) $1.27
B) $1.25
C) $1.30
D) $1.32
If people expect inflation to occur, they will make more consumption purchases today
Indicate whether the statement is true or false
In the allocation of resources between present and future,
A. the market works imperfectly. B. the market works perfectly. C. centrally planned economies are more efficient than market economies. D. the invisible hand guarantees efficiency in market economies.