At a market equilibrium, the marginal net benefit curve is
a. Horizontal
b. Vertical
c. Increasing
d. Decreasing
e. Maximized
Ans: d. Decreasing
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If there are 1,000 rutabaga farms, all perfectly competitive, an increase in the price of fertilizer used for growing rutabagas will
A) have no effect on the total quantity of rutabagas supplied, because no farm has enough market power to raise the price. B) have no effect on the total quantity of rutabagas supplied, because each farm's supply curve is a vertical line. C) decrease the total quantity of rutabagas supplied, because each farm's supply curve shifts leftward. D) reduce the total quantity of rutabagas supplied, because each farm's supply curve is a horizontal line and will shift upward.
Sensitivity analysis is restricted to natural sciences.
Answer the following statement true (T) or false (F)
An import quota
A. is a legislative requirement stating that firms which import some of their merchandise must hire a certain number of immigrant workers. B. is a price ceiling imposed on an imported good. C. is a supply restriction limiting the quantity of a good that can be imported. D. is a price floor imposed on an imported good.
The diagram shows two product demand curves. On the basis of this diagram, we can say that:
A. over range P 1 P 2 price elasticity of demand is greater for D 1 than for D 2 .
B. over range P 1 P 2 price elasticity of demand is greater for D 2 than for D 1 .
C. over range P 1 P 2 price elasticity is the same for the two demand curves.
D. not enough information is given to compare price elasticities.