A wheat farmer sells wheat to a grain broker Chicago. Since the market for wheat is generally considered to be competitive, the wheat farmer maximizes his profit by choosing
a. to produce the quantity at which average variable cost is minimized.
b. to produce the quantity at which average fixed cost is minimized.
c. to sell its wheat at a price where marginal cost is equal to average total cost.
d. the quantity at which the farm's marginal cost of production is equal to the market price.
D
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A landfill site produces an obnoxious odor. Homes downwind of the site rent for $1000 per month while homes upwind of the site rent for $1500 per month
If the odor is the only detectable difference between two neighborhoods, the difference in the rent is the ________ of the odor. A) social cost B) external cost C) private cost D) marginal cost-benefit E) private benefit
Refer to above figure. The monopolist can export as much as it likes of its steel at the world price of $5/ton. How much steel will the monopolist sell, and at what price?
What will be an ideal response?
The point where the sum of the external and decision-making costs is minimized is _____
a. unanimity b. Pareto efficient c. simple majority rule d. the optimal collective decision rule
Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The quantity demanded of medical services is
A) QM. B) Q0. C) Qd. D) undetermined without more information.