If the supply price on 100 acres is zero, then $30 for the next 100 acres, and finally $60 for the third 100 acres, the supply curve of land curve is
a. vertical at 100 acres
b. a straight, upward-sloping curve starting at the origin
c. horizontal at $30 (the average rent)
d. upward-sloping and step-shaped
e. U-shaped starting at $30 (the average rent)
D
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In a constant-cost industry, input prices remain constant as:
a. the supply of inputs fluctuates. b. firms encounter diseconomies of scale. c. workers become more experienced. d. firms enter and exit the industry.
The slope of the short-run aggregate supply curve shows that:
A. as overall price levels increase, firms are willing to produce more. B. as overall price levels decrease, firms are willing to produce more. C. firms are constrained to a certain level of output in the short run, regardless of the price. D. firms are constrained to a certain price in the short run, regardless of level of output.
On a downward-sloping linear demand curve, total revenue reaches its maximum value at the
a. midpoint of the demand curve. b. lower end of the demand curve. c. upper end of the demand curve. d. It is impossible to tell without knowing prices and quantities demanded.
Given: Sales of $14 million; implicit costs of $3 million; and explicit costs of $12 million. Find (a) accounting profit; and (b) economic profit.
Fill in the blank(s) with the appropriate word(s).