What is the long run problem for farmers?
What will be an ideal response?
Answer: Farm prices and total revenue have been failing. productivity increases faster than demand, and fewer farmers are required to meet demand. Less efficient farmers cannot survive as the market price drops, thus the number of farmers decreases over time
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In marginal cost pricing, the natural monopoly would have to set price equal to
A) AFC. B) AVC. C) ATC. D) MC.
When the cross-price elasticity of demand for two goods is a positive number, one can correctly conclude that:
a. the goods are normal goods. b. the goods are inferior goods. c. the goods are substitutes. d. the goods are complements. e. total revenue will increase when the price increases.
The aggregate supply curve shows for each price level the
a. total amount of money supply at each price level. b. amount of frictional unemployment that will occur. c. amount of structural unemployment that will occur. d. quantity of goods and services that businesses are willing to produce.
A policy change that changes the natural rate of unemployment changes
a. neither the long-run Phillips curve nor the long-run aggregate supply curve. b. both the long-run Phillips curve and the long-run aggregate supply curve. c. the long-run Phillips curve, but not the long-run aggregate supply curve. d. the long-run aggregate supply curve, but not the long-run Phillips curve.