As a resource becomes more scarce, we expect its price to
a. rise.
b. fall.
c. remain constant.
d. fluctuate wildly.
a
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Why does a firm in a competitive industry charge the market price?
a. If a firm charges less than the market price, it loses potential revenue. b. If a firm charges more than the market price, it loses all its market power. c. The firm can only sell limited number of units of output, so it wants to sell at the market price in order to lower its costs. d. All of the above are correct.
Cartels that set prices and allocate sales among their member firms were commonly referred to in the late 19th century as
A. conglomerates. B. trusts. C. monopolies. D. multinationals.
According to Mundell, countries to constitute an optimal currency area need to satisfy one of the two conditions. Explain these conditions
What will be an ideal response?
Real income is found by:
A. dividing nominal income by 70. B. multiplying nominal income by 1.03. C. dividing the price index (in hundredths) by nominal income. D. dividing nominal income by the price index (in hundredths).