Diane Rae is a farmer in the perfectly competitive industry of sugar cane. She knows that she can sell more output than she currently does
a. only by lowering the price of her sugar cane
b. only if she is able to drive out some of her competition
c. without affecting the market price
d. by raising the barriers to entry so that more of the market is left to those like herself who are already in the industry
e. only if she can develop a patent on sales
C
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The effects of the negative supply shocks of 1973, 1979 and 2007 were different due to the ________
A) role played by rational expectations in the 1979 event B) different sources of the supply shocks C) credibility of the monetary authorities D) different individuals who led the Federal Reserve System
If producing a soccer ball costs Jake $5, and he sells it for $40, his producer surplus is $45
a. True b. False Indicate whether the statement is true or false