One of the best defenses we have against malaria these days comes from a fern-like weed called wormwood. Fluctuating supply and demand have pushed the plant's price from $155 per kilo one year, to over $1000 the next
There is a push to set a price ceiling for the plant. Which of the following would NOT occur if there was a price ceiling set below the equilibrium price on wormwood? A) The wormwood market would be allocatively efficient because its price would not fluctuate.
B) A wormwood shortage might occur.
C) A black market for wormwood may be created.
D) There would be an increase in inefficiency in the wormwood market.
A
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Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by:
A. multiplying total product by product price. B. multiplying marginal product by product price. C. dividing total revenue by marginal product. D. comparing marginal product with various possible input prices.
If the average product of 20 workers is 100 bushels of wheat and the average product of 21 workers of wheat is 99 bushels of wheat, then the marginal product of the 21st worker was
A) -1 bushel of wheat. B) 5 bushels of wheat. C) 79 bushels of wheat. D) 99 bushels of wheat.