today, the cash price for corn (delivery october) in nevada, ia is $3.30/bu and the cash price for corn is $3.24/bu in grinnell, ia. if a producer calculated that $0.08/bu was the amount that it would cost to cover all transportation and handling costs for shipping corn from grinnell to nevada, a farmer located near granola would:
a) sell corn in grinnell
b) pay transport costs and sell corn in nevada
a) sell corn in grinnell
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The aggregate demand curve shifts to the right when there is ________
A) a negative price shock B) a decrease in the nominal interest rate C) a decrease in inflation D) all of the above E) none of the above
Refer to the table below. What is Gorgeous Sands Resort's long-run average cost?
The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units.
A) $6,000
B) $1,000
C) $3,000
D) $5,000
A production possibility graph slopes down because of:
a. the law of increasing costs. b. nonhomogeneous resources. c. inefficiency. d. improper output mix. e. unemployment.
Assume you are lending money to a friend for a year and want to earn real interest of 5 percent on the loan. If you believe the inflation rate the next year will be 3 percent, you should charge your friend a nominal interest rate of
a. 5 percent b. 8 percent c. 3 percent d. 15 percent e. whatever he will pay