Milky Moo and Mega Cow are the only sellers of milk. Milky Moo's supply function is QsMMoo = 12P - 6 at prices above $0.50 and zero at prices below $0.50. Mega Cow's supply function is QsMCow = 9P - 3 at prices above $0.33 and zero at prices below $0.33. In this case, the market supply curve for milk is:
A. kinked at a price of $0.33.
B. kinked at a price of $0.50.
C. downward sloping.
D. an upward sloping straight line.
B. kinked at a price of $0.50.
You might also like to view...
A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
De Beers accounts for approximately 80% of diamond sales worldwide. The source of its market power is:
A. its exclusive ownership of South African diamond mines. B. its patent on diamond production. C. the engagement customs of couples in Western cultures. D. the perfectly inelastic demand for diamonds.
An increase in which of the following variables should cause an increase in profit per unit of capital?
A) total wages and salaries B) total sales C) the capital stock D) the ratio of total sales to the capital stock E) the ratio of total sales to total wages and salaries
Economic Fact
What will be an ideal response?