Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the price of cowboy hats increases from $38 to $46
A) there will be a surplus of cowboy hats.
B) producer surplus will rise from $22 to $46.
C) consumers will buy no cowboy hats.
D) the marginal cost of producing the third cowboy hat will increase to $46.
B
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The demand curve faced by the individual perfectly competitive firm is:
A) downward sloping. B) upward sloping. C) horizontal. D) vertical.
A dual economy is characterized by:
a. rapid productivity growth in both the agricultural sector and the manufacturing sector. b. uneven development trends in two economic sectors. c. drastic differences in regional work ethics. d. the nonexistence of the government and foreign trade sectors. e. a manufacturing sector that does not depend on natural resource supplies for production.
The urban consumers that the CPI is based on includes:
A. retired persons. B. greeters at Walmart. C. bank tellers. D. All of these are included.
Suppose that we are currently at point b in Figure 14.1. An increase in the price level will result in a:
A. shift in the AD curve from AD1 to AD2. B. shift in the AD curve from AD1 to AD0. C. movement from point b to point a. D. movement from point b to point c.