The decision by firms of the quantity of each input to demand is based on
A. the price of output.
B. government oversight.
C. the price of inputs.
D. techniques of production available.
Answer: C
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The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price of a ton of turnips is $1,200. The demand for turnips increases permanently
The turnip industry experiences neither external economies nor external diseconomies. In the long run, the price of a ton of turnips ________. A) increases so it is above $1,200 B) is $1,200 and turnip growers will make normal profit C) decreases so it is below $1,200, and turnip growers will make normal profit D) decreases so it is below $1,200 and the turnip growers make an economic profit
A good example of using the discount rate to serve the lender of last resort role for the financial system occurred during the
A) savings and loan crisis of the 1980s. B) stock market crash of 1987. C) sharp rise in government deficits during the 1980s. D) developing-country debt crisis of the 1980s.
Firm A producing one good acquires another firm B producing another good. The cross price elasticity of demand for the goods owned by each firm is -1.4 . Holding other things constant, the acquiring firm should
a. Raise prices on both goods b. Lower prices on both goods c. Raise price on the acquired good only d. Need more information
If Macland’s growth rate is consistently 8 percent, how many years will it take to double its standard of living?
a. 2 years b. 8 years c. 9 years d. 12 years