What is the reason why large, short-run declines in farm prices do not significantly reduce farm production in the short run?
A. Farmers' variable costs are high compared with their fixed costs
B. Farmers' fixed costs are high compared with their variable costs
C. Farmers' prices received are greater than prices paid for agricultural products
D. Farmers' prices paid are greater than prices received for agricultural products
B. Farmers' fixed costs are high compared with their variable costs
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For negotiations to eliminate an externality to be successful
A. one person must be willing to benefit by less than the cost of the externality. B. one person must benefit by double the cost of the externality. C. both parties must agree on a mutually beneficial trade. D. both parties must have property rights.
What factors determine the size of the price elasticity of demand?
What will be an ideal response?
Differentiate between the following
a) Normal goods and inferior goods b) Substitutes and complements
Movement along the aggregate supply curve is referred to as a change in aggregate quantity supplied
a. True b. False Indicate whether the statement is true or false