Milk can be used to make yogurt or cheese. Other things equal, if consumers start demanding more yogurt,
a. the price of milk will fall.
b. less milk will be used in cheese and more will be used in yogurt.
c. the supply of milk will decrease.
d. the price of cheese will fall.
e. all of the above.
b. less milk will be used in cheese and more will be used in yogurt.
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If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold?
A) Price is equal to the minimum long-run average cost of production. B) Economic profit equals zero. C) The value of the last unit of output produced is equal to the value of the resources used to produce it. D) There is an incentive for additional firms to enter the market because existing firms are earning revenues in excess of the explicit costs of production.
Which of the following was the most important factor determining the volume of land sales in the Midwest and South during the antebellum period?
a. Immigration b. Indian resistance to settlement c. Agricultural prices d. Governmental road building
Which one of the following factors increases the likelihood that a cartel agreement will lead to higher profit for cartel members?
a. free entry into the cartelized market b. a small number of sellers involved in the cartel agreement c. the cartel members produce a differentiated product d. highly unstable demand for the product produced by the cartel
Unlike economic profit, economic rent:
A. may not be driven to zero by competition. B. doesn't involve opportunity costs. C. can be less than zero. D. only applies to land.