In a competitive market for Sardines, if Mama Jessica’s chain of pizza restaurants decides to support hard-working sardine fishers by paying 15 percent above market price, what would the theory of economic rent predict?
A. The quantity supplied of sardines will exceed the quantity demanded.
B. The quantity demanded of sardined will exceed the quantity supplied.
C. The expected economic profits selling from sardines to Mama Jessica’s will exceed the competitive sardine market profits.
D. The expected economic profits selling from sardines to Mama Jessica’s will equal the competitive sardine market profits.
Answer: D
You might also like to view...
The Lucas Wedge is estimated to
A) total over $406,000 per person as a result of the slowdown in the growth rate of real GDP. B) be positive in some years and negative in others. C) be about 2 percent of real GDP per year. D) be negative due to the severe recession in 2008-2009. E) have reached about $13,000 per person in the last year.
Which of the following is not part of Hernando de Soto's The Other Path?
A. Reducing taxes. B. Encouraging the "underground" economy. C. Enforcing laws to safeguard private income. D. Improving infrastructure.
To decrease the money supply using the reserve requirements, what would the Fed typically do?
A. raise the reserve requirement for banks B. reduce the reserve requirement for banks C. make each bank voluntarily set its own reserve levels D. let each bank get less currency from the Treasury
Marginal utility is the _______________.
Fill in the blank(s) with the appropriate word(s).