Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If demand for wheat is D1, then in the long run
A. the firm will exit the industry.
B. firms will increase their output so that their average fixed cost per unit falls.
C. the firm will increase its price and output.
D. new firms will enter the industry, and the current firms will expand production.
Answer: A
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Answer the next question based on the data provided in the tables below regarding the production possibilities for rice and corn for two hypothetical nations, Wat and Xat. Wat's Production Possibilities ABCDEFRice7506004503001500Corn050100150200250Xat's Production Possibilities ABCDEFRice2,5002,0001,5001,0005000Corn0100200300400500The mutually beneficial terms of trade will be
A. between 3 and 5 units of rice for 1 unit of corn. B. greater than 6 units of rice for 1 unit of corn. C. between 3 and 5 units of corn for 1 unit of rice. D. less than 2 units of rice for 1 unit of corn.
Suppose a nation has a total population of 100,000,000. Out of that, 70% are in the labor force and 65% of the population is employed. What is the nation's unemployment rate?
A) 5.0% B) 7.1% C) 7.7% D) 30.0%
For a perfectly competitive firm, marginal revenue product is equal to:
a. price minus marginal cost. b. price times marginal revenue. c. price times marginal product. d. none of these.
Gains from joining a trade bloc will be higher if the import demands of the member countries are relatively elastic.
Answer the following statement true (T) or false (F)