The current price floor in the agricultural lettuce market makes it such that the price of lettuce is 25% higher than the equilibrium price and that 100 heads of lettuce are demanded. Assuming that the elasticity of demand for lettuce is -0.50, how much would revenue (P ? Q) change for the lettuce company if the government removed the current price floor?
A) Revenue will increase by $15.60.
B) Revenue will decrease by $15.60.
C) Revenue will increase by $40.60.
D) Revenue will increase by $ 9.40.
B
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Refer to the figure above. If the monopolist faces a constant marginal cost of $2, what is the optimal quantity that it should produce?
A) 20 units B) 40 units C) 45 units D) 80 units
Assuming each policy is performed with the same magnitude, which of the following would be the most restrictive monetary policy action on the part of the Federal Reserve?
a. Sell government securities, raise reserve requirements, and lower the discount rate b. Buy government securities, raise reserve requirements, and raise the discount rate c. Sell government securities, lower reserve requirements, and raise the discount rate d. Sell government securities, raise reserve requirements, and raise the discount rate
_____________ is defined as firm's ability to earn above-average profit
a. Resource heterogeneity b. Superior performance c. Competitive advantage d. Sustainable advantage
Based on what you know about the determinants of price elasticiyt, the demands for agricultural products, like, wheat, soybeans, milk, and eggs tend to be
a. price inelastic b. price elastic c. price inelastic only in the long run d. price elastic only in the short run e. price elastic only in the long run