Trade will take place:
A. only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good.
B. if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.
C. if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good.
D. None of the statements associated with this question are correct.
Answer: B
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Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Which of the following is true for both perfectly competitive and monopolistically competitive firms in the long run?
A) P = MC. B) MC = ATC. C) P > MR. D) Profit equals zero.
What is true at the profit-maximizing quantity for a perfectly competitive firm but not for a nondiscriminating monopoly?
a. Price equals marginal cost. b. Price is greater than marginal cost. c. Marginal revenue equals marginal cost. d. Marginal revenue is less than marginal cost. e. Marginal revenue is greater than average revenue.
Refer to Scenario 7.7 below to answer the question(s) that follow. SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively. Refer to Scenario 7.7. The marginal product of the second worker is
A. 3. B. 4. C. 5. D. 9.