Suppose that the market for candy canes operates under conditions of perfect competition, that it is initially in long-run equilibrium, and that the price of each candy cane is $0.10. Now suppose that the price of sugar rises, increasing the marginal and average total costs of producing candy canes by $0.05. Based on the information given, we can conclude that in the short run a typical producer of candy canes will be making:
A. zero economic profit.
B. The answer is impossible to determine based on the information given.
C. an economic profit.
D. negative economic profits.
D. negative economic profits.
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Explain how each of the following events would affect the short-run aggregate supply curve
a. A decrease in the price level b. A decrease in what the price level is expected to be in the future c. A price level that is currently lower than expected d. An unexpected decrease in the price of an important raw material e. A decrease in the labor force
A shift in the demand curve occurs when
a. suppliers place more goods on the market. b. the price of a good rises. c. consumers want to buy more or less than before at a given price. d. the price of the good falls.
Refer to the graph shown. If the firm is producing 525 units of output, profit is equal to:
A. $0. B. $30. C. $38. D. ?$38.
The question below are based on the following four sets of data-pairs: (1) A and B, (2) C and D, (3) E and F, and (4) G and H. In each set, the independent variable is in the left column and the dependent variable is in the right column
The vertical intercept is 12 in which of the above data sets?
A. 1
B. 2
C. 3
D. 4