The All-the-Rage microbrewery is represented in Figure 9-9. If the market price is $2.50 per pint, then in the short run, the microbrewery will
a.
earn the same profit by producing zero pints as by producing 50 pints per day
b.
produce zero pints per day to avoid an economic loss
c.
produce 50 pints per day and break even
d.
produce between zero and 50 pints per day
e.
produce more than 50 pints per day
a
You might also like to view...
Alberta owns a nature preserve next to a coal mine. The mine produces dust that enters a stream on its land but which later flows through Alberta’s land. The dust in the stream does about $20,000 of damage to Alberta’s plants per year. The mine can clean up the dust before it reaches the stream for about $12,000 per year. Alberta offers them $15,000 per year to clean up the dust. What economic idea does this scenario exemplify and why?
What will be an ideal response?
When demand increases in a perfectly competitive market, in the short run _______________, and in the long run _______________.
A. quantity supplied increases; supply increases B. quantity supplied increases; supply decreases C. quantity supplied decreases; supply decreases D. quantity supplied decreases; supply increases