All grapefruit juice producers have decided to blend tangerine juice with the grapefruit juice. This blend results in a higher cost of production, but studies show that consumers prefer the taste of the blend to straight grapefruit juice
What will happen to the equilibrium price and quantity of the new "blended" grapefruit juice now that it costs more to produce but consumers like it better? A) The price rises and the quantity increases.
B) The price falls and the quantity increases.
C) The effect on the price is uncertain but the quantity increases.
D) The price rises, but the effect on the quantity is uncertain.
D
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At point d in the above figure, the average product of labor equals
A) 15. B) 4. C) 3.75. D) approximately 1.
The empirical data indicate that in the short run exchange rates are much more variable than inflation differentials
Indicate whether the statement is true or false
If the price is less that the firm’s AVC, the firm’s output
A. is determined by the relationship between MC and AVC. B. will drop to zero. C. will change to where MC = ATC. D. will increase to where P = AC.
Which of the following is the best example of a variable cost?
a. property taxes b. lease payments for equipment rental c. rent on office space d. wages for hourly workers e. interest on outstanding loans