Donald produces nails at a cost of $200 per ton. If he sells the nails for $350 per ton, his producer surplus per ton is
a. $150.
b. $200.
c. $350.
d. $550.
a
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Refer to Table 2-15. Which of the following statements is true?
A) Jack has a comparative advantage in lawn mowing and George in garden cultivating. B) Jack has a comparative advantage in garden cultivating and George in lawn mowing. C) George has a comparative advantage in both tasks. D) Jack has a comparative advantage in both tasks.
Total fixed cost
a. increases as output increases. b. declines as output increases. c. is always zero. d. remains constant even if the firm shuts down.
If the demand for agricultural products is price inelastic and the supply is dependent upon weather conditions, then
A) price changes are likely to be small, and farm revenues are likely to be highly volatile. B) price changes are likely to be large, and farm revenues are likely to be highly volatile. C) prices are likely to be constant, and farm revenues are likely to be constant. D) prices are likely to be constant, and farm revenues are likely to be highly volatile. E) price changes are likely to be small, and farm revenues are likely to be constant.
What is the equilibrium price (P) and quantity (Q - in thousands) of bird feeders?
A) P = $10; Q = 25 thousand B) P = $35; Q = 20 thousand C) P = $20; Q = 20 thousand D) P = $5; Q = 30 thousand