A production quota program:
A. imposes limits on the quantity that individual firms can produce.
B. is a way to reduce prices without causing the overconsumption that occurs under a price support program.
C. places limitations on the quantity that individual consumers can purchase.
D. is like a subsidy in that it reduces the price that buyers pay for a good.
A. imposes limits on the quantity that individual firms can produce.
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A firm in monopolistic competition
A) has no control over the price of the product it is selling. B) might be selling a brand name product. C) does not advertise nor market its product. D) Both answers A and B are correct. E) Answers A, B, and C are correct.
Suppose Hanna spends her entire budget buying bagels and cups of coffee each day. Also, suppose the marginal utility of her last bagel is 100 and the marginal utility of her last cup of coffee is 200
If the price of a bagel is $4 and the price of a cup of coffee is $2, then A) Hanna needs to decrease her consumption of bagels to maximize her utility. B) Hanna needs to increase her consumption of bagels to maximize her utility. C) Hanna should buy half as many bagels as coffee in order to maximize her utility. D) bagels must provide more total utility than coffee.
Which of the following statements is true about comparative advantage?
a. Comparative advantage exists whenever one person, firm, or nation can do something at higher opportunity costs than some other individual, firm, or nation. b. Comparative advantage is interesting theoretically, but it is not relevant when evaluating real-world economic conditions. c. Low income countries cannot possibly have a comparative advantage in the production of any good or service because of the relatively low literacy rate. d. Comparative advantage exists whenever one person, firm, or nation can do something at lower opportunity costs than some other individual, firm, or nation. e. Only technologically advanced economies can have a comparative advantage in the production of a good or service.
Use the above table and assume a fixed cost of $200. At an output of 2, ATC is
A. $150.
B. $200.
C. $250.
D. $300.