Suppose that Paola Flygare, producer of the Flygare fiberglass bass boat, produces 8,000 bass boats, but consumers want 13,000 bass boats. Assuming other producers have also underproduced for the market, the most plausible consequence is
a. an increase in overall production and an increase in the economy's is unemployment
b. a cutback in overall production and an increase in the economy's unemployment
c. an increase in real GDP and a decrease in the economy's unemployment
d. an increase in real GDP and an increase in the economy's unemployment
e. no change, because Flygare will not alter its production plans due to short-run market changes
C
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The situation in which a firm is able to charge the maximum price consumers are willing to pay for each unit of output the firm sells is referred to as:
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination.
In a two-period model with production, a permanent increase in domestic government spending
A) increases domestic output and increases the current account surplus. B) increases domestic output and decreases the current account surplus. C) decreases domestic output and increases the current account surplus. D) decreases domestic output and decreases the current account surplus.
The largest firm in Industry J has a 90% market share, while the remaining ten firms each has a one percent share. The largest firm in industry K has a 80% market share, while the other two firms each has a 10% share. Which statement is true?
A. Industry J has a higher concentration ratio than industry K. B. Industry K has a higher concentration ratio than industry J. C. The industries have the same concentration ratio. D. None of these statements are true.
________: social costs of imperfect competition
Fill in the blank(s) with correct word