Sweet Husks is a perfectly competitive corn farm. If the expected price of an ear of corn changes from $0.30 to $0.33, Sweet Husks' expected marginal benefit from holding additional ears of corn in inventory will shift ________ and the profit-maximizing number of ears of corn to hold in inventory will ________.
A) upward; increase
B) downward; decrease
C) downward; increase
D) upward; decrease
A) upward; increase
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In New State, the bottling law requires that people get a refund of five cents when they return an empty bottle or can. Why does the state pay people to return bottles? In your answer, be sure to mention the role played by incentives
What will be an ideal response?
The services of real estate brokers are provided in a competitive market. If the state Board of Realtors enacts several requirements that limit the number of real estate brokers, which of the following is most likely to occur?
A) The supply curve of real estate brokers will shift to the left. B) The supply curve of real estate brokers will shift to the right. C) Social welfare will remain unchanged. D) The supply curve will remain unchanged.
When a transfer price decreases
a. the buying division will want to sell less to the selling division b. the buying division will want to sell more to the selling division c. the selling division will want to sell less to the buying division d. the selling division will want to sell more to the buying division
A firm has average fixed costs of $0.20 and average variable costs of $2.50 at an output of 500 units. The firm's total costs are therefore
A. $1,150. B. $1,350. C. $1,250. D. $1,500.