Which statement best characterizes the long-run decline in the agricultural industry?
A. The growth in the demand for farm products has exceeded the growth in the supply of such products, causing rising farm product prices and falling farm income
B. The growth in the supply of farm products has exceeded the growth in the demand for such products, causing falling farm product prices and falling farm income
C. The supply of farm products has increased while the demand for such products has decreased, causing falling farm product prices and falling farm income
D. The demand for farm products has increased while the supply of such products has decreased, causing rising farm product prices and rising farm income
B. The growth in the supply of farm products has exceeded the growth in the demand for such products, causing falling farm product prices and falling farm income
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If a monopoly is price discriminating between two groups, A and B, based on observable customer characteristics, there is no difference in the marginal cost of selling to the two groups, and the elasticity of demand for group A is -1.5 while the elasticity of demand for group B is -2.1, which of the following is true?
A. The markup and price for group A customers will be higher than for group B customers. B. The markup and price for group B customers will be higher than for group A customers. C. The markup for group A customers will be higher than for group B customers, but there is not enough information to determine which price will be higher. D. The price for group A customers will be higher than for group B customers, but there is not enough information to determine which markup will be higher.
If monetary policy moves unemployment below its natural rate, both expected and actual inflation will rise
a. True b. False Indicate whether the statement is true or false
In the long run, a monopolistically competitive firm will produce where:
a. average cost equals price. b. average cost equals marginal revenue. c. marginal revenue equals price. d. marginal cost equals price.
One of the reasons fewer antitrust cases have been brought before the courts is:
A. union workers have gained more power. B. antitrust laws have been preemptively effective. C. foreign goods comprise a larger share of goods purchased. D. the market is more competitive.