As described in the text, which of the following statements best describes the strategy of many potato growers since 2005?
A) Growers have worked together to reduce supply and stabilize demand. As a result, equilibrium price has been propped up and allowed farmers to earn what they consider a decent profit.
B) Growers have continued to compete vigorously with each other, causing prices and profits to decrease.
C) Growers have restricted supply so much that there is now a severe shortage of potatoes in the United States.
D) because efforts by potato growers to restrict supply are illegal in the United States, they have focused exclusively on increasing demand to increase their profits.
A
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A) movement to the right along; shift to the right of B) downward shift of; shift to the right of C) movement to the left along; movement down along D) upward shift of; shift to the right of
An oligopoly is a market dominated by a few sellers.
Answer the following statement true (T) or false (F)
Both Diana and Sarah like jazz music and music by the Beatles. Diana likes music by the Beatles much better than jazz music, whereas Sarah prefers jazz music to music by the Beatles. If we were to graph an indifference curve with CDs by the Beatles on the horizontal axis and jazz CDs on the vertical axis, then
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The average expected rate of return of a financial asset equals:
A. the rate that compensates for time preference plus the rate that compensates for risk. B. the rate that compensates for time preference plus the rate of inflation. C. beta plus the rate that compensates for risk. D. the risk-free interest rate plus the rate of inflation.