Recall the Application about the supply of shipping services to answer the following question(s).Recall the Application. As the price per ton of cargo drops low enough that it does not cover the AVC of smaller inefficient ships, then the smaller, more inefficient ships will decide to:
A. shut-down.
B. raise the price they charge.
C. make up for it by raising their speeds.
D. make up for it by accepting more cargo.
Answer: A
You might also like to view...
The personal distribution of income in the United States shows that
A) income is equally distributed. B) the poorest 20 percent of individuals receive approximately 20 percent of total income. C) the richest 20 percent of individuals receive approximately 50 percent of total income. D) the poorest 60 percent of individuals receive approximately 50 percent of total income. E) the richest 20 percent of individuals receive approximately 25 percent of total income.
In order to practice price discrimination, the firm must
a. offer a good at different prices to different segments of the market b. first establish a monopoly position in the market c. make sure the practice is sanctioned by the government d. select a price so that different segments of the market will demand different quantities e. first collude with the other firms in the industry
If revenue from a gasoline tax is used to build and maintain public roads, the gasoline tax may be justified on the basis of
a. the benefits principle. b. the ability-to-pay principle. c. vertical equity. d. horizontal equity.
The fact many people give to charity, and the fact that most people obey the law regardless of whether someone's watching or not, are field evidence for:
A. The invisible hand B. Fairness C. Self-interest D. Cognitive biases