As a result of legislation to establish a floor price for milk, most dairy farmers will
a. end up earning a normal rate of return in the long run
b. end up earning a zero rate of return in the long run
c. end up earning a negative rate of return in the long run
d. benefit from the increased cost of specialized resources used in dairy farming
e. suffer if they own specialized resources at the time the legislation is passed
A
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The new growth theory of economic growth examines the interaction of
A) regulations and capital expansion. B) technology, research, and innovation. C) resources and labor productivity. D) labor and population.
Suppose Sandy's Candies wants to increase its total revenues. If Sandy increases the price of her candy, she must be assuming that the demand for candy is
A) unit elastic. B) inelastic. C) elastic. D) income elastic.
If the price of peaches, a substitute for plums, increases the demand for plums will decrease
Indicate whether the statement is true or false
If society decides it wants more of one good and all resources are fully utilized, then
A) additional resource supplies will have to be found. B) it is unable to do this unless technology advances. C) it has to give up some of another good and incur some opportunity costs. D) more unemployment will occur.