If the market price of a good is more than the opportunity cost of producing it,
a. the situation will remain unchanged as long as supply and demand remain in balance.
b. the market price of the product will increase in the long run.
c. resources will flow away from production of the good, causing supply to decline with the passage of time.
d. producers will increase supply in the long run.
d. producers will increase supply in the long run.
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The question of whether the public or the private sector is appropriate to provide public goods must be decided on a case by case basis
a. True b. False
The dollar return on a foreign investment is less than the interest rate on the foreign asset, if the foreign currency depreciates against the U.S. dollar between the purchase date and the maturity date
a. True b. False Indicate whether the statement is true or false
Ahmed is going to a film matinee by himself. He purchases a ticket, a jumbo tub of popcorn, a box of Raisinets, and a Slurpee. Which of the following likely has the highest marginal utility for him?
a. a second ticket to the same movie b. a second tub of popcorn c. a second box of Raisinets d. a second straw for his Slurpee
If the price of a good increases by 5% and the quantity demanded decreases by 10%, then at that price, the good is
A. elastic. B. perfectly inelastic. C. perfectly elastic. D. inelastic.