Suppose that corn farmers want to increase their total revenue. Knowing that the demand for corn is inelastic, corn farmers should
a. plant more corn so that they would be able to sell more each year.
b. increase spending on fertilizer in an attempt to produce more corn on the acres they farm.
c. reduce the number of acres on which they plant corn.
d. contribute to a fund that promotes technological advances in corn production.
c
You might also like to view...
In the figure above, the tax wedge is equal ________ per hour, the after-tax real wage rate is equal to ________, and the before-tax real wage rate is equal to ________
A) $20; $30; $35 B) $15; $20; $35 C) $20; $30; $20 D) $10; $30; $30 E) $30; $20; $35
Overexpansion can cause a perfectly competitive firm to ________.
A) earn economic profit B) produce at a quantity where the marginal revenue exceeds the firm's average total cost C) incur economic losses D) produce at a quantity where the market price exceeds the firm's average total cost
The fact that a higher standard of living tomorrow can only be achieved by sacrificing consumption today is an example of the:
A. principle of increasing opportunity costs. B. scarcity principle. C. equilibrium principle. D. principle of comparative advantage.
If a deposit of $50 in the banking system can lead to a maximum expansion in bank deposits of $250, using the money multiplier formula, the required reserve ratio must be:
A. 40 percent. B. 20 percent. C. 25 percent. D. 50 percent.