Refer to Figure 9.4. In the short run, how much should the firm produce at the price P1?
A. 0
B. Q1
C. Q2
D. Q3
A. 0
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An agricultural corn market faces a positive supply shock due to a beneficial rainy season and the use of new genetically modified seeds. As a result, farmers face the largest crop harvest in decades
Which answer below explains how a farm could actually go bankrupt under this scenario. A) The elasticity of supply for corn is elastic such that a positive shock reduces total revenue. B) The demand for corn is inelastic such that a positive supply shock reduces total revenue. C) An inelastic demand curve will cause revenue to fall because price decreases by more than the increase in quantity demanded. D) B and C
If a firm refuses to hire any minorities due to a personal prejudice, its profits
a. will increase markedly. b. will decrease. c. will not be affected. d. will increase slightly.
Which of the following scenarios describes a producer surplus?
a. The fashion company would accept $300 for its new wool jacket, but they sell it for $500. b. Nina is willing to spend $750 for a new designer wool jacket, but she finds it on sale for $500. c. The city budgeted $10,000 for a management consultant, but it was able to hire one for $9,000. d. The store needed $100 a dress to cover costs, but the few last dresses had to be marked down to $60.
The best example of a transfer payment would be ___.
A. govenment investment B. government purchases C. government giving funds to the unemployed D. the government paying its workers