What is one reason why would corn production, which takes place in a perfectly competitive market, achieve an efficient use of resources?
A) because a perfectly competitive firm produces at the lowest possible long run average total cost
B) because a perfectly competitive firm produces where marginal revenue exceeds marginal cost
C) because a perfectly competitive firm is a price maker
D) because the goal of a perfectly competitive firm is to profit maximize
A
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If two steel firms merge, the merger is described as
a. a horizontal merger b. a vertical merger c. a conglomerate merger d. either a vertical or conglomerate merger depending on whether the oligopoly is balanced or unbalanced e. either a vertical or conglomerate merger depending on the number of steel firms in the steel industry
Refer to the accompanying table. According to the table, Corey has the absolute advantage in: Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015
A. neither making nor delivering pizza. B. making and delivering pizza. C. delivering pizza. D. making pizza.
It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment. In the situation described above, we would expect an
What will be an ideal response?
The following graph shows the supply curve for a group of students looking to sell used smartphones. Each student has only one used smartphone to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used smartphone.
Region A (the purple shaded area) represents the total producer surplus when the market price is $125, while Region B (the grey shaded area) represents the change in total producer surplus when the market price changes from $125 to $175