Consider the supply of orange juice. If the price of orange juice rises, which of the following occurs?
a. Producers of orange juice are satisfied with their revenue and leave production unchanged.
b. Producers of orange juice decrease the quantity of orange juice that they produce.
c. Producers of orange juice go out of business, and the supply of orange juice shifts to the left.
d. Producers of orange juice increase their production of orange juice.
d. Producers of orange juice increase their production of orange juice.
You might also like to view...
Despite the Obama administration's support of the Trans-Pacific Partnership (TPP), the AFL-CIO labor union has argued that the TPP will not
A) protect the environment. B) ensure safe imports. C) create jobs. D) all of the above
In discussions of barriers to entry, what is meant by the term "virtuous cycle"?
A) A virtuous cycle refers to successful research and development that leads to information that is used to develop other new products. B) A virtuous cycle refers to the situation where the pursuit of self-interest in establishing an entry barrier leads to an increase in social welfare (the "invisible hand"). C) A virtuous cycle refers to a situation where if a firm can attract enough customers initially, it can attract additional customers because its product's value has been increased by other customers using it, which attracts even more customers. D) A virtuous cycle refers to a firm using the profits from a monopoly in one market to establish a monopoly in another market.
If a firm's total variable cost exceeds its total revenue, the firm should stop production by shutting down temporarily
Indicate whether the statement is true or false
Which of the following does not reflect a positive rate of time preference?
a. People are willing to pay high prices to see new movies at first-run theaters. b. A bank pays interest on savings accounts. c. Ed puts money in his mattress for a rainy day. d. Dry cleaners that provide faster service can charge more. e. A college freshman parties all semester, then stays awake studying for 50 straight hours during final exam week.