Given the scenario described, if the market price of hammers increased from $6 to $7:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.
A. total producer surplus would increase.
B. total producer surplus would remain unchanged.
C. total producer surplus would decrease.
D. total producer surplus cannot be determined with the information given.
B. total producer surplus would remain unchanged.
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Which of the following is an example of a normative statement?
A. Immigration should be allowed in the United States. B. The federal minimum wage is $7.25. C. The cost of basic health insurance rose from the previous year. D. Tom is a college student.
When a firm increased its output by one unit, its AFC decreased. This is an indication that
A) the law of diminishing returns has taken effect. B) MC < AFC. C) AVC < AFC. D) the firm is spreading out its total fixed cost.
Refer to Table 3.2, which shows some costs and benefits of having your car repaired. What is the marginal cost of the 5th hour spent on repairs?
A. $360
B. $435
C. $510
D. $780
Two members of the Kenyan parliament from coffee-growing areas said that no firm should have a monopoly to market Kenyan coffee. The retail coffee company Tetu Coffee has sparked a storm in the industry by promising to earn the country Sh400 billion annually if given exclusive licenses to market Kenyan coffee. The members of parliament said the coffee bean farmers should be free to sell their beans to the highest bidder. Are the farmers in Kenya justified in being upset with having a single coffee buyer?
A. Maybe; the single buyer may reduce price but also will raise the quantity of coffee beans. B. Yes; the single buyer will reduce both the quantity and price of coffee beans. C. No; the single buyer will increase the price and quantity of coffee beans. D. Maybe; the single buyer may reduce quantity but also raise price of coffee beans.