In the mid-1990s, cattle ranchers in the United States kept raising cattle even though prices were at a ten-year low and below average total cost. What is the likely explanation for this?
A) The ranchers were hoping to receive government subsidies.
B) The exit costs were too high.
C) Continuing to operate resulted in smaller losses than would have been incurred by shutting down.
D) Cattle is an important source of protein and its production is essential for the United States.
C
You might also like to view...
When the economy is at full employment,
A) 100 percent of the labor force is employed. B) there is no structural or cyclical unemployment. C) there is no cyclical unemployment. D) there is only frictional unemployment. E) the natural unemployment rate equals zero.
How does the U.S. federal government assist workers who have lost their jobs due to international trade?
What will be an ideal response?
Under what circumstances will the residual supply curve for a country be upward sloping?
A) when it does not import any of the good from the rest of the world B) when it imports a small portion of the rest of the world's supply of the good C) when it imports a large portion of the rest of the world's supply of the good D) Either A or B
The automobile, steel, and oil markets are all examples of:
A. perfectly competitive markets. B. monopolies. C. monopolistically competitive markets. D. oligopolies.