The opportunity cost of producing one more unit of a good is calculated by dividing the
A) total quantity of the other good by the total quantity of the good whose opportunity cost we're calculating.
B) decrease in the quantity of the other good by the increase in the quantity of the good whose opportunity cost we're calculating.
C) price of the good whose opportunity cost we are calculating by the number of units of the other good that are forgone.
D) total quantity of that good by the total quantity of other good.
E) increase in the quantity of that good by the decrease in the quantity of other good.
B
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Perfectly competitive markets are:
A. the most common type of market in our economy. B. hard to find in a real world setting. C. made up principally by consumer goods. D. typically found in industrial sectors of our economy.
The relevant market for a firm consists only of firms operating within the same industry
Indicate whether the statement is true or false
The demand by sterile couples for babies to adopt has grown rapidly, while the supply has dwindled because of improved contraception, liberal abortion laws, and an increase in the probability that unwed mothers will keep their children. It violates the law to sell human beings at any age, but for every twenty legal adoptions there seemingly is one baby sale at a price up to $50,000 . The generic
term economists apply to the market produced by this type of shortage is a. "black market." b. "white slave market." c. "the adoption market." d. "baby market."
Suppose that the market for candy canes operates under conditions of perfect competition, that it is initially in long-run equilibrium, and that the price of each candy cane is $0.10. Now suppose that the price of sugar rises, increasing the marginal and average total cost of producing candy canes by $0.05; there are no other changes in production costs. Based on the information given, we can conclude that once all of the adjustments to long-run equilibrium have been made, the price of candy canes will equal:
Select one: A. $0.10. B. $0.15. C. The question is impossible to answer without knowing exactly how many firms entered and/or left the industry. D. $0.05.