All the supply of peppermint oil is produced from mint plants grown in one county by several competitive growers (the number of growers is not limited). The quality of land in the county varies greatly
Would you expect the long-run market supply curve to slope upward, downward, or remain constant? Why?
The long-run market supply curve will slope up because the growers have different costs. Those growers with poor-quality land have a higher average cost of production. The horizontal sum of the individual supply curves will slope up.
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In the simple circular flow model
A) businesses buy labor services from households, but supply other factors of production themselves. B) households spend their entire income on consumer products. C) profits are a type of income that is not received by households. D) households spend the income they receive from labor services but save the income they receive from selling the other factors of production.
Refer to Figure 13-2. Ceteris paribus, a decrease in the labor force would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.