Given the scenario described, if the market price of hammers increased from $7 to $11:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.
A. more producers would participate in the market.
B. only Bob's Hardware would lose surplus.
C. both Bob's Hardware and Lace Hardware would lose surplus.
D. House Depot is the only producer that will gain surplus.
A. more producers would participate in the market.
You might also like to view...
Under pure competition, the market price of an output is $3. The output schedule of a firm using input X is listed in the table below. If the price of input X is $12, how many units of input X will the firm employ to maximize profits?Units of XMarginal Product110.029.938.847.756.665.574.483.392.2
A. 5 B. 7 C. 4 D. 9
Q = K1/2L1/2 w = $2, r = $2 The firm would like to know the minimum cost of producing 2000 units of output. Find the combination of inputs that minimizes the cost of producing 2000 units, the total cost, and identify the expansion path
What will be an ideal response?
Should stock market speculation be encouraged or discouraged?
the negative GDP gap were equal to 4% of the potential GDP, Okun's law suggests that the actual unemployment rate would exceed the natural rate of unemployment by:
A. One percentage point B. Two percentage points C. Three percentage points D. Four percentage points