Unless markets are perfectly competitive, they may fail to maximize the total benefits to buyers and sellers

Refer to Figure 9.5. If the government establishes a price floor of $2.50, how many pounds of berries will be sold?

A) 200 B) 300 C) 400 D) 600 E) 800

The shape of a firm's long-run average cost curve is determined by:

a. the degree to which each input encounters diminishing marginal productivity. b. the underlying nature of the firm's production function when all inputs are able to be varied. c. how much the firm decides to produce. d. the way in which the firm's expansion path reacts to changes in the rental rate on capital.