Farmers cannot individually affect market price because
A. There is an infinite demand for their goods.
B. Demand is perfectly inelastic for the farmer's produce.
C. The government exercises control over the market power of competitive firms.
D. Their individual production is insignificant relative to the production of the market.
Answer: D
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Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Dirty Inc. ($/day)$100$200$380$740$1,460Cost to Filthy Inc. ($/day)$400$430$490$580$700 If pollution is unregulated, then a total of ________ tons of smoke will be emitted each day.
A. 1 B. 2 C. 8 D. 4
Suppose that last year the slope of the AE curve was 0.67 and this year the slope of the AE curve changed to 0.8. Which of the following best describes what happens to the multiplier?
a) it rises from 3 to 5 b) it falls from 5 to 3 c) it rises from 1.25 to 1.49 d) it falls from 1.49 to 1.25
If the price of Good X falls and total revenue rises, then
A. Demand for Good X is inelastic. B. The price elasticity of demand for Good X is equal to 1. C. Demand for Good X is unitary elastic. D. Demand for Good X is elastic.
Price decreases will ________ a household's choice set.
A. decrease B. increase C. not change D. sometimes increase and other times decrease