Prices help coordinate all phases of production so producers have the right quantities of resources they need, in the right place, to operate
Indicate whether the statement is true or false
TRUE
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The above figure shows the payoff to two airlines, A and B, of serving a particular route
If the two airlines must decide simultaneously, and the government imposes a $20 per firm tax on firms that service this route, which of the following maximizes the firms' joint profits? A) Neither firm services the route. B) Firm A offers firm B $20 to not enter. C) Both firms will service this route. D) Firm B offers firm A $30 to not enter.
What do cooperative firms do if they make a profit?
A) Cooperatives never earn profits, so this issue does not occur. B) Cooperatives must pay their profits to the federal governments as a windfall profit tax. C) Cooperatives must keep half of the profits and return the other half to their members. D) Cooperatives generally return the profits to their members as a dividend.
All other things constant, when a small LED bulb manufacturing unit recruits a new worker, its weekly output increases from 40,000 bulbs to 44,000 bulbs. If the market price of each LED bulb is $1.50, the marginal revenue product of the new worker is: a. zero
b. $1,500. c. $6,000. d. $4,000.
What is a price floor and what are its economic effects?
Please provide the best answer for the statement.