If you overheard a farmer discussing his planting plans for the upcoming season, and he said "The price of corn has gone way up. I know I'll have to put some money into fertilizer on that field on the hill that's been idle all these years, but it will be worth it this year." This would be consistent with which justification for an upward sloping supply curve
A. the real-balance effect?
B. increasing marginal cost?
C. diminishing marginal utility?
D. the need for higher prices in one good to motivate a shift in production from another?
Answer: B
Economics
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At low levels of production, marginal productivity of labor increases as labor increases. At high levels of production, marginal productivity of labor decreases as labor increases. Are these two statements contradictory? Explain
What will be an ideal response?
Economics
A firm, such as a public utility, which is the sole producer in a market in which the government determines prices and standards of service, is known as a(n):
a. local monopoly. b. natural monopoly. c. regulated monopoly. d. oligopoly. e. monopolistically competitive firm.
Economics