Which of the following statements represents a correct sequence of events?
A) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the left, price rises, and total revenue rises assuming demand is inelastic.
B) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the right, price rises, and total revenue rises assuming demand is inelastic.
C) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the right, price falls, and total revenue falls assuming demand is elastic.
D) Productivity rises in the agriculture sector, the supply curve of foodstuffs shifts to the left, price falls, and total revenue rises assuming demand is elastic.
E) none of the above
C
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Which of the following statements regarding the production possibilities frontier is TRUE?
A) Points outside the frontier are attainable. B) Points inside the frontier are attainable. C) Points on the frontier are less efficient than points inside the frontier. D) None of the above because all of the above statements are false.
Economies of scale exist over all ranges of output for which short-run average total cost exceeds long-run average cost
a. True b. False Indicate whether the statement is true or false