Which of the following statements does not reflect the concept of factor suitability?
A. It is one of the three concepts that explain the Law of Increasing Cost.
B. If the economy is shifting from butter to gun production, the butter makers will give the gun makers their worst workers.
C. Too many farmers work one field, eventually it will lead to less production.
D. All farmland is not equally well-suited for producing corn.
C. Too many farmers work one field, eventually it will lead to less production.
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In reality, prices of non-renewable resources have not increased continually according to the model developed in Section 16.3 because of
A) abundance of the resource. B) technological progress changing marginal cost. C) changing market power of producers. D) All of the above.
The less sensitive quantity demanded is to a change in price, the
A) smaller a change in price must be to induce a certain change in quantity demanded. B) greater the absolute price elasticity of demand. C) smaller the absolute price elasticity of demand. D) closer the absolute price elasticity of demand is to one.
Suppose a fishing boat currently brings 10,000 fish to market each day and earns a profit of $40,000 when the price of fish is $12 . Suppose that there are 100 workers on the boat, and each works 10 hours each day. If their health insurance premiums, paid by the boat owner, increase by $80 per worker, what will the new profit be?
a. $80,000 b. a loss of $40,000 c. $48,000 d. $32,000 e. a loss of $760,000
If the MU of half gallon of milk is $3.50 and the MU of gallon of milk is $3.25, and they both sell for the same price, we would expect consumers to
a. increase their purchases of gallons of milk. b. increase their purchases of half gallons of milk. c. not change their purchasing habits. d. buy only gallons of milk.