We can expect producers to pay:
A. None of these statements is true.
B. more for land with lower productivity.
C. less for land with higher productivity.
D. less for land with lower productivity.
D. less for land with lower productivity.
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Suppose that Far North Canadian Lumber, Ltd., sells lumber in Canada at a price of $1,000 per 1,000 board feet and exports the same lumber to the United States at a price of $600 per 1,000 board feet. U.S. Lumber, Inc., produces and sells lumber for $700 per 1,000 board feet in the United States. Is Far North Canadian Lumber dumping lumber in the United States?
a. Yes; its price in Canada is greater than its price in the United States. b. Yes; its price in Canada is greater than U.S. Lumber's price. c. No; its price in the United States is less than U.S. Lumber's price. d. No; it is maximizing its profits when it price discriminates between the United States and Canada.
If marginal cost of an additional unit of output is greater than average cost, then average cost will rise
a. True b. False Indicate whether the statement is true or false