Refer to Cost of Production. The short-run average cost of producing 60 units of output per week is
The following questions refer to the diagram below. The wage rate is assumed to be $12 per hour, the rental rate is assumed to be $6 per hour, and capital is assumed to be fixed in the short run at 10 hours.
a. $3 per unit.
b. $4.50 per unit.
c. $5 per unit.
d. $9 per unit.
c. $5 per unit.
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In the Stackelberg leadership model,
a. the leader earns a larger profit compared to the follower. b. the leader charges a higher price for its output compared to the follower. c. the follower produces a larger output compared to the leader. d. the follower charges a lower price for its output compared to the leader.
In early 1996, Congress proposed an agriculture bill that would gradually reduce price supports for many agricultural products. If the bill were to be approved, what would most likely happen to the number of families employed in agriculture?
a. It would decrease, because agricultural prices would fall. b. It would decrease, because agricultural prices would rise. c. It would increase, because agricultural prices would fall. d. It would increase, because agricultural prices would rise.