Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts decreases from $15 to $10
A) there will be a shortage of polo shirts.
B) producer surplus will fall from $13 to $3.
C) the marginal cost of producing the third polo shirt will increase to $25.
D) consumers will buy no polo shirts.
B
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At the short-run break-even point, the perfectly competitive firm is
A) earning positive economic profits. B) earning zero economic profits. C) earning negative economic profits. D) just covering its total variable costs.
If a firm offers quantity discounts or special promotional allowances only to favored distributors and the effect is to substantially lessen competition, then it is in violation of the:
a. Clayton Act. b. Robinson-Patman Act. c. Sherman Antitrust Act. d. Federal Trade Commission Act. e. Celler-Kefauver Act.
Fantastic Cuts Hair Salon knows that a 15% increase in the price of their haircuts will result in a 5% decrease in the number of haircuts sold. What is the elasticity of demand facing Fantastic Cuts?
a. 0.05 b. 0.10 c. 0.33 d. 3.0
Increases in the price of farm labor during the post-bellum period led to
a. an increase in farmers' demand for capital equipment. b. a decrease in farmers' demand for land. c. a decrease in the demand for food. d. an increase in the demand for fertilizer.