If a depletable resource is selling in a perfectly competitive market, its expected price will continue to fall over time. This makes it unprofitable for firms to seek out the resource and bring it to market.
Answer the following statement true (T) or false (F)
False
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Consider the market for feather pillows. If there is an increase in the price of feather dusters, a substitute in production for feather pillows, then
A) there is a downward movement along the demand curve for feather pillows. B) the supply curve for feather pillows shifts leftward. C) the price of feather pillows decreases. D) the demand curve for feather pillows shifts rightward. E) the demand curve for feather pillows shifts leftward.
With a partial trade agreement
A) goods and services are allowed to cross boundaries without tariffs. B) two or more countries agree to liberalize trade in a selected group of categories. C) two or more countries set common tariffs toward non-members. D) two or more countries allow the free mobility of inputs such as labor and capital. E) two or more countries agree on establishing a common currency.
Monopolies and oligopolies are similar in that both owe their existence to government intervention in the marketplace
Indicate whether the statement is true or false
Marginal product refers to ______, and marginal revenue product refers to______.
a. labor; the value of economic and accounting profits b. a change in output; revenue gained from that change c. capital; income gained through investments in capital d. derived demand for labor; an increase in profitability