Which of the following examples accurately reflects a perfectly competitive market?
a. Even though KTR Growers doubled its corn output, the market price did not change.
b. When several soybean growers reduced their output, the market price soared.
c. Because of a drought, the wheat output in Kansas dropped, and the market price fluctuated.
d. Jake’s Vegies increased its output so much that the market price for beets and carrots dropped.
a. Even though KTR Growers doubled its corn output, the market price did not change.
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The commercial banks in Lendland have
Reserves $400 million Loans $3,600 million Deposits $4,000 million Total assets $4,600 million The banks hold no excess reserves. a) Calculate the banks' reserve ratio. b) An immigrant arrives in Lendland with $5 million, which he deposits in a bank. How much does the immigrant's bank lend initially?
Which of the following is true about the production possibilities curve when a technological progress occurs? The curve:
a. shifts inwards to the left. b. becomes flatter at one end and steeper at the other end. c. becomes steeper. d. shifts outward to the right. e. does not change.
Assume that when the price of good Z is increased from $5 to $6, the total revenue earned increases from $600 to $690. Based on this information, we can conclude that over this range, demand for Z is:
A) elastic.
B) unit elastic.
C) inelastic.
D) perfectly inelastic.
Insurance companies use deductibles and copayments to:
A. increase access to health care. B. reduce health care costs by discouraging overuse of the health care system. C. prevent small companies from self-insuring their workers. D. keep government out of the health care insurance industry.