Farmer McDonald sells wheat to a broker in Kansas City, Missouri. Because the market for wheat is generally considered to be competitive, Mr. McDonald maximizes his profit by choosing
a. to produce the quantity at which average variable cost is minimized.
b. to produce the quantity at which average fixed cost is minimized.
c. the quantity at which market price is equal to Mr. McDonald's marginal cost of production.
d. the quantity at which market price exceeds Mr. McDonald's marginal cost of production by the greatest amount.
c
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When the person who chooses how much to purchase doesn't have to bear the full cost, the quantity demanded tends to be higher.
Answer the following statement true (T) or false (F)
Which of the following types of goods is subject to the free-rider problem?
A) a private good B) a public good C) a product that creates a positive externality D) a product that creates a negative externality
The largest marital status category of black single parents in 1960 was "married-spouse absent."
Indicate whether the statement is true or false
Appendix: When using a multiplicative power function (Y = a X1b1X2b2X3b3) to represent an economic relationship, estimates of the parameters (a, and the b's) using linear regression analysis can be obtained by first applying a ____ transformation to convert the function to a linear relationship
a. semilogarithmic b. double-logarithmic c. reciprocal d. polynomial e. cubic