Refer to the table below. Relative to Free Cows, Happy Cows' marginal cost curve is ________, which makes an accurate forecast ________ valuable to the managers of Happy Cows.
Happy Cows and Free Cows are two separate perfectly competitive dairy farms. The table above shows the respective firms' marginal cost at various production levels.
A) steeper; more
B) flatter; less
C) steeper; less
D) flatter; more
D) flatter; more
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At an antique auction, Ross hoped to purchase a mid-century coffee table for less than $400. When other bidders drove the price of the item above that level, he dropped out of the bidding. What economic concept does this story represent?
a. market efficiency b. opportunity cost c. marginal thinking d. absolute advantage
Which of the following statements accurately describes the growth of this economy?
a. The total spending in the economy grew faster than total production, with a price level change from PL1 to PL2.
b. Long-run economic growth is illustrated by the shift from LRAS2 to LRAS1.
c. The aggregate demand curve shifted from AD2 to AD1 due to increased spending by consumers, firms, and government.
d. The LRAS curve shifted further to the right than did the AD curve.
The optimal level of pollution occurs where the marginal social benefit is equal to
a. marginal private cost, which equals marginal social cost plus marginal external cost b. marginal social cost, which equals marginal private cost plus marginal external cost c. marginal external cost, which equals marginal private cost plus marginal social cost d. marginal private cost, which equals marginal social cost plus marginal internal cost e. marginal social cost, which equals marginal private cost plus marginal internal cost
Which of the following would indicate the beginning of a recessionary phase in an economy?
a. Many new firms starting up b. Stock prices improving c. Businesses slowing down d. Demand for real estate picking up e. Orders for new equipment increasing