When prices drop in response to a decline in demand for an increasing cost industry:
a. producer surplus will increase but rents may decrease.
b. rent earned by elastically supplied inputs will decline by more than rent earned by inelastically supplied inputs.
c. rent earned by elastically supplied inputs will decline by less than rent earned by inelastically supplied inputs.
d. both producer surplus and rents will increase.
c
You might also like to view...
The seven leaders of the Federal Reserve System headquartered in Washington, D.C. constitute the:
A. Board of Governors. B. Federal Reserve Bank of Washington, D.C. C. Federal Open Market Committee. D. Federal Economic Advisory Board.
Refer to the scenario above. If the investor plans to invest a sum of $4,000, which of the following statements is true?
A) All three investment options are equally profitable. B) Options A and B are profitable investment options, whereas Option C is not. C) Options A and C are profitable investment options, whereas Option B is not. D) Options B and C are profitable investment options, whereas Option A is not.
In the figure above, the United States ________ helicopters per year
A) exports 480 B) exports 720 C) imports 480 D) imports 240
What is a firm's balance sheet?
What will be an ideal response?