Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at $0.20 per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p
If the long-run supply curve is horizontal, then how much will consumers spend, in total, on potatoes? A) $0
B) $500
C) $10,000
D) $50,000
C
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A factor of production that can be used in any sector of an economy is a(an)
A) mobile factor. B) specific factor. C) variable factor. D) import-competing factor. E) export-competing factor.
A redistributive program that taxes the rich and gives to the poor _____
a. is an example of equality of opportunity in action b. is an example of equality of results in action c. is an example of the an economically efficient transfer d. is an example of a procedural theory of justice in action
Suppose that, at a rental rate of $1000 per month, 650 residents wish to rent apartments and that landlords offer 800 apartments available for rent. Which one of the following statements is then TRUE?
A) There is a shortage of 150 apartments. B) There is an excess demand for apartments. C) The market clearing rental price of apartments is too low. D) The market clearing rental price of apartments is less than $1000 per month.
If labor supply is very elastic, the payroll tax is
A. borne mostly by the employer. B. borne mostly by the workers. C. borne entirely by the employer. D. split evenly between the employer and the workers.