Use supply and demand analysis to explain what is most likely to happen to price and quantity in a competitive market for a crop such as lettuce, tomatoes, or oranges, when extreme weather destroys a large portion of the crop
Please provide the best answer for the statement.
In such a crop market, the demand curve does not change, but the supply curve decreases because the severe weather destroys the crop. The leftward shift in the supply curve increases the crop price and decreases the crop quantity.
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Which of the following is NOT correct about a single-price monopoly?
A) Maximum profit is found where demand is the most inelastic. B) Marginal revenue is negative when demand is inelastic. C) Marginal revenue is positive when demand is elastic. D) To sell more output, the firm must lower its price. E) To maximize its profit, the firm produces so that marginal revenue equals marginal cost.
Reduced competition through merging of companies will raise social welfare
a. if the social cost from the synergies exceeds the benefit of increased market power. b. if the benefit from the synergies exceeds the social cost of increased market power. c. always. d. never.
When a country exports more goods and services than it imports, this is called
A. a balance of trade deficit. B. a balance of trade surplus. C. a positive terms of trade. D. a negative terms of trade.
The most competitive industry is one that has
A. price leadership. B. open collusion. C. covert collusion. D. a cartel.