As the time to respond to a change in market conditions increases, the odds of demand being elastic:
a. Increase
b. Decrease.
c. Stay the same.
d. Cannot be determined.
a
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Adopt incentive compensation
a. Under all circumstances since it is the best solution b. Only if it is effective in making the agent work harder c. Only if its results exceed its costs d. Only B&C
Suppose that the market for candy canes operates under conditions of perfect competition, that it is initially in long-run equilibrium, and that the price of each candy cane is $0.10. Now suppose that the price of sugar rises, increasing the marginal and average total cost of producing candy canes by $0.05; there are no other changes in production costs. Based on the information given, we can conclude that in the long run we will observe:
Select one: A. neither entry nor exit from the industry. B. firms leaving the industry. C. firms entering the industry. D. some firms entering and some firms leaving.
Which of the following characterizes a typical agricultural market?
A. Low barriers to entry. B. A downward-sloping demand curve for the firm. C. A horizontal demand curve for the industry. D. Market power on the part of each farmer.
Some economists argue that the federal government should normally run a deficit at potential GDP, with the borrowed funds applied to
A) consumption goods. B) investment goods. C) social security benefits. D) health care costs.