Scientific evidence suggests that consumption of foods rich in fiber lowers cholesterol. As a result, the demand for bran increases at every price by 5,000 bushels and the supply curve for bran is perfectly price elastic. The quantity of bran consumed will
a. not change.
b. change unless the demand curve is perfectly inelastic.
c. rise by exactly 5,000 bushels.
d. not rise by exactly 5,000 bushels unless the demand curve is perfectly inelastic.
c
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When Peter's Pizza Company produces 50 pizzas, its average total cost is $8 . The marginal cost of the 51st pizza is $7 . If the firm chooses to produce the 51st pizza, what will happen to average total cost? Explain
What will be an ideal response?
As the level of competition in an industry increases, the price-cost margin approaches:
A) 0. B) 1. C) 10. D) infinity.
According to the shortsightedness effect, politicians tend to favor projects with:
a. long-run benefits and long-run costs. b. short-run benefits and short-run costs. c. short-run benefits and long-run costs. d. long-run benefits and short-run costs.
The income effect of an inferior good is negative.
a. true b. false