A number of economic historians have attempted to determine whether US railroads were built ahead of demand. Which of the following statements presents accurate information about the findings of this area of research?
a. Fogel and Mercer found that post-bellum transcontinental had relatively low initial profit rates that grew over time.
b. According to Fishlow, antebellum railroads were built ahead of demand, but post-bellum transcontinentals were not.
c. Fishlow finds that government aid to antebellum railroads was generous and widespread.
d. Mercer finds that rates of return on all post-bellum transcontinental railroads were less than rates on alternative investments.
a. Fogel and Mercer found that post-bellum transcontinental had relatively low initial profit rates that grew over time.
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A surplus of a good means
a. there is an excess demand for this good b. the price is lower than its equilibrium level c. the quantity demanded exceeds the quantity supplied d. the quantity supplied is less than the quantity demanded e. there is an excess supply of the good
Anderson's Bakery sells apple pies in a perfectly competitive market. The market price is $12 per pie. The bakery produces 300 pies per month with a marginal cost of $7 per pie, an average variable cost of $5 per pie, and an average total cost of $7 per pie. In this scenario, Anderson is likely to: a. increase the production of apple pies to maximize profit
b. decrease the production of apple pies but stay open. c. continue to maintain current production levels to minimize losses. d. shut down immediately to minimize losses.