Suppose Bright Orange is large firm that grows and harvests oranges. Each orange yields 2 ounces of orange juice and exactly one orange peel. Bright Orange sells the orange juice to juice distributors and the orange peels to fragrance companies. If the market for oranges is perfectly competitive, Bright Orange will determine its profit-maximizing output level based on ________.
A) the market price of an orange
B) the market price of an ounce of orange juice
C) the market price of two ounces of orange juice
D) the market price of an orange peel
A) the market price of an orange
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What determines the magnitude of the changes in price level when central bank takes monetary policy measures that leads to a change in the aggregate demand?
a. Changes in the money supply b. Slope of the aggregate supply curve c. Rate of change of interest rate d. Total money supply in the economy
Suppose a great baseball player autographed only 50 baseball bats in his lifetime. If those bats are available for purchase online, the supply of the bats will be: a. perfectly elastic
b. highly elastic. c. perfectly inelastic. d. unit elastic.
Suppose Qxd = 10,000 ? 2 Px + 3 Py ? 4.5M, where Px = $100, Py = $50, and M = $2,000. Then good X has a demand which is:
A. inelastic. B. elastic. C. unitary. D. neither elastic, inelastic, nor unitary elastic.
Companies whose stocks increase the most during a stock market bubble will:
A. find it difficult to put their capital to profitable use after the bubble bursts. B. tend to under-invest. C. usually rebound faster once the bubble bursts. D. have a difficult time raising investment capital.