Suppose that a market for a product is in equilibrium at a price of $3 per unit. At any price below $3 per unit
A) there will be an excess demand for the product.
B) the quantity demanded of the product will be less than the quantity supplied of that product.
C) there will be a surplus of that product.
D) there will be an excess supply of the product.
A
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Consideration of the minimum efficient scale of operation would suggest that, to minimize production costs, the market should be served by a large number of small firms when the LRAC curve slopes downward over the relevant range of output
Indicate whether the statement is true or false
Under what conditions will a firm's long-run producer surplus exceed their economic rents?
A) The firm requires land resources in the production process. B) The firm has access to specialized tools or technology that other firms do not own. C) The firm has access to knowledge or human capital that other firms do not own. D) The firm is operating in an imperfectly competitive market.
Define the following terms carefully: (a) Full employment (b) Purchasing power of money (c) Real wage rate (d) Relative price
Recall the Application about the productivity of large infrastructure investments to answer the following question(s). According to the Application, which infrastructure investment in the U.S. contributed to the increased the productivity of agricultural lands between 1870-1890?
A. railroads B. the internet C. the highway systems. D. dams.