Assume Leo buys coffee beans in a competitive market. It follows that
a. Leo has a limited number of sellers from which to buy coffee beans.
b. Leo will negotiate with sellers whenever he buys coffee beans.
c. Leo cannot influence the price of coffee beans even if he buys a large quantity of them.
d. None of the above is correct.
c
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Refer to Figure 7-2. Marginal private benefit is represented by which curve?
A) D2 B) Supply C) D1 D) All of the above represent marginal private benefit.
According to the table above, transportation equipment production exhibits
A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) varying returns to scale.
If the government regulates the price a monopoly can charge, and the price ceiling is set below what the competitive market price would be, then
A) a shortage will exist. B) a surplus will exist. C) producer surplus is maximized. D) consumer surplus is maximized.
Continuing with the same family from the preceding question, what is the greatest (integer) number of vacation days the family would be willing to give up in order to guarantee a healthy vacation?
a. 1 b. 2 c. 3 d. 4