Refer to Table 4-11. The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick. The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units. What is the value of producer surplus?
A) $100 thousand B) $200 thousand C) $600 thousand D) $800 thousand
A
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A firm facing a horizontal demand curve
A. cannot affect the price it receives for its output. B. always produces at an output at which P = MR. C. faces perfectly elastic demand for its product. D. All of the responses are correct.
Which of the following was not a component of the National Recovery Act (NIRA)?
a. Set minimum prices for goods. b. Set minimum wages. c. Set a minimum number of hours of work. d. Institute codes of fair practice for various industries.
A federal budget deficit occurs when _____
Fill in the blank(s) with the appropriate word(s).
Suppose a monopolistically competitive industry evolved into a perfectly competitive industry. Which of the following statements is correct?
A) The industry would produce more output and charge a lower price after the change. B) The industry would produce at decreasing returns to scale. C) Elasticity of demand for the firm's product would remain the same after this change occurred. D) This industry would produce the same level of output at lower prices in the long run than before the change.