The rutabaga market is perfectly competitive and the price of a ton of rutabagas rises. As a result, Rudy, a rutabaga farmer, will
A) decrease his output of rutabagas.
B) not change his output of rutabagas because Rudy's firm is a price taker.
C) increase his output of rutabagas.
D) at first decrease and then increase his output of rutabagas.
E) probably change his output of rutabagas, but more information is needed about the change in the marginal revenue of a ton of rutabagas.
C
You might also like to view...
The health care system in the United Kingdom is often referred to as ________, under which the government owns most of the hospitals and employs most of the doctors
A) a single-payer system B) a universal health insurance system C) socialized medicine D) a private health care system
Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. What is Coke's inverse demand function?
A. QC = (90 - 400PP) - 500PC B. PC = (0.18 + 0.8PP) - 0.002QC C. QC = (490 - 400PC) D. PC = (400 - 500QC)
Suppose that Mark and Kate are the only consumers of pizzas in a small town. Mark purchases 6 pizzas a week if the price is $12.00 per pizza, but only 3 pizzas per week if the price is $16.00 . Kate, on the other hand, purchases 3 pizzas per week at $12.00 per pizza, but only 2 per week if the price is $17.00 each. The market demand for pizza at a price of $12.00 is equal to _____
a. 5 b. 7 c. 14 d. 9
In a competitive market, if the existing price is below the equilibrium price, market forces will drive the price:
a. Up and quantity supplied up b. Down and demand down c. Up and quantity supplied down d. Up and supply up