Suppose Bright Orange is large firm that grows and harvests oranges. Each orange yields 2 ounces of orange juice and exactly one orange peel. The market for oranges is perfectly competitive and Bright Orange sells the orange juice to juice distributors and the orange peels to fragrance companies. At a quantity of 500,000 oranges, juice distributors will pay $0.05 per ounce of orange juice and
fragrance companies will pay $0.10 per orange peel. At the quantity of 500,000 oranges, what is the market equilibrium price of an orange?
A) $0.05 B) $0.20 C) $0.15 D) $0.10
B) $0.20
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Major categories of market-based instruments include
a. pollution charges d. pollution permit trading systems b. subsidies e. all of the above c. deposit/refund systems
One difference between perfect competition and monopolistic competition is that
a. in perfect competition, firms cannot earn a long-run economic profit b. in perfect competition, firms take full advantage of economies of scale in long-run equilibrium; in monopolistic competition, firms do not c. only under perfect competition is there ease of entry and exit d. in monopolistic competition, the firm's demand curve is horizontal; in perfect competition, the firm's demand curve slopes downward e. in perfect competition, there are many firms; under monopolistic competition, there are few firms
During periods of poor economic performance, real GDP:
A. declines and unemployment rises. B. declines and unemployment declines. C. declines but unemployment typically does not change. D. is unchanged but unemployment rises sharply.
The stage of production where the total physical product curve begins to decline corresponds to
A) MPP< 0. B) APP < 0. C) Stage 3. D) Both B and C