What effect does the increase of the price of corn have on the cost curves of a firm producing items like corn-based cereal or tortillas?
Please provide the best answer for the statement.
Corn is a major ingredient in the production of products like corn-based cereal or tortillas. Increases in the price of corn leads to increases in their short-run average variable costs, marginal costs and average total costs. All of these curves would shift upward.
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An assumption of the neoclassical theory of growth is that
A) people receive only subsistence real GDP per person. B) all technological advances are the result of chance. C) the marginal product of all types of capital increases as more capital is accumulated. D) knowledge has diminishing returns.
One of the major reasons why the US trade deficit with China has grown in the last 10 years is that
a. the Yuan is seriously undervalued relative to where it would need to be to lead to a zero trade deficit. b. the yuan is seriously overvalued relative to where it would need to be to lead to a zero trade deficit. c. currency markets can never bring trade into balance, even in the long run. d. US productivity has fallen recently. e. the U.S. has suffered two sharp recessions.