Strawberries, a normal good, are produced in a perfectly competitive market. Average consumer incomes increase. This will cause the individual strawberry farmer?s marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: A
You might also like to view...
People on welfare often face the highest marginal tax rates of anyone because ______
a. of our regressive income tax system b. of the non-deducibility of state sales taxes c. of the loss of entitlement payments when earning additional income d. of increasing marginal utility of income
Suppose you borrow $1,000 at 8% for 2 years. If the interest is compounded annually, how much money will you owe at the end of those 2 years?
A. $1,080.00 B. $1,160.00 C. $1,166.40 D. $1,345.60
Automatic stabilizers are the:
A. expansionary fiscal policies. B. taxes and government spending that affect fiscal policy without specific action from policymakers. C. Keynesian policies. D. fiscal policies that government actively chooses to adopt.
Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S. If the price of corn feed is $4 and the price of soybean feed is $5, what is the cost-minimizing feed combination producing P = 200?
a. C = 100 b. S = 40 c. C = 50, S = 20 d. C = 20, S = 50