Refer to Scenario 3.2 below to answer the question(s) that follow.SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.Refer to Scenario 3.2. The floods that destroyed part of the lettuce crop would have caused
A. a decrease in the quantity of tomatoes demanded.
B. an increase in the quantity of tomatoes demanded.
C. a decrease in the demand for tomatoes.
D. an increase in the demand for tomatoes.
Answer: C
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Mrs. Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost. Mrs. Lovejoy is investing in companies that are
A) always going to be profitable. B) productively efficient. C) both productively and allocatively efficient. D) allocatively efficient.
If the price of apples went up by 25 percent, which of the following values of the cross price elasticity for cars would be most reasonable to anticipate?
A) 0.0 B) 1.2 C) -2.5 D) -1.0
The law of diminishing returns indicates that the marginal physical product of a variable input declines as more of it is employed, ceteris paribus.
Answer the following statement true (T) or false (F)
Discuss whether or not a competitive, profit-maximizing firm would ever cease hiring workers if the marginal product of the next worker is higher than that of the last worker hired (that is, the firm is on the increasing portion of its marginal product curve).
What will be an ideal response?