If a firm is a price-taker, it can
What will be an ideal response?
sell as much as would like at the going market price.
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Jeremiah runs a bullfrog farm in Frogville, Oklahoma. Jeremiah notices that each additional worker he employs adds more to the total output than does the previous worker. Jeremiah must be
A) experiencing increasing marginal returns to labor. B) producing at a point where the average product of labor decreases as more workers are employed. C) producing at a point below his total product curve. D) mistaken because the law of decreasing returns points out that it cannot be the case that the marginal product increases as more workers are employed. E) producing at a point where the average product of labor exceeds the marginal product of labor.
If cheese spreads and butter are substitutes, an increase in the price of butter will:
a. shift the demand curve for cheese spreads upward. b. shift the demand curve for cheese spreads downward. c. shift the demand curve for butter upwards. d. shift the demand curve for butter downward.
If a consumer is willing to pay $100 for a used vintage record player that is a "cherry" and $30 for a used vintage record player that is a "lemon," the consumer will offer:
A. $100 for any used vintage record player even if the probability that is a "cherry" is 50 percent. B. $30 for any used vintage record player even if the probability that it is a "lemon" is 50 percent. C. $130 for any used vintage record player if the probability that it is a "cherry" is 50 percent. D. $65 for any used vintage record player if the probability that it is a "lemon" is 50 percent.
When money is used to acquire goods and services, it is functioning as a
A. Equation of value. B. Medium of exchange. C. Store of value. D. Standard of account.