If resource prices are fixed and the selling price rises, then
a. profits will decrease.
b. profits will increase.
c. profits will remain constant.
d. both profits and output will decrease.
b
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Keynesian economists believe monetary policy is more effective than fiscal policy in stabilizing the business cycle
a. True b. False Indicate whether the statement is true or false
Which one of the following statements about policies to deal with monopoly is true? a. There is no consensus among economists about the best way to deal with monopoly and oligopoly
b. Economists agree that antitrust is best. c. Economists agree that government regulation is best. d. Economists agree that nationalization is best. e. Economists agree that laissez-faire is best.
The Condorcet paradox shows that there is no scheme for aggregating individual preferences into a valid set of social preferences
a. True b. False Indicate whether the statement is true or false
The market demand curve for a private good is the horizontal sum of individual consumer demand curves. In contrast, once a public good is produced, it is available to all consumers in an identical amount. Thus the market demand curve for a public good is the vertical sum of individual consumer demand curves
Indicate whether the statement is true or false