Luis operates a cherry orchard in Northern Oregon and sells the cherries in a perfectly competitive market at a price of $1.70 per pound. Last month Luis sold 2,000 pounds of cherries. His fixed cost of production was $800 and his average variable cost was $1.00 per pound. What was his profit?

The rationing function of price

A) occurs when there is a movement of resources into or out of markets as a result of changes in the equilibrium market price. B) is also known as the guiding function of price. C) occurs when consumers change their tastes and preferences. D) occurs only when the market experiences severe shortages.

Productivity growth in the U.S. averaged approximately 3 percent per year between 1947 and 1973; it has averaged approximately 5 percent annually since then

a. True b. False Indicate whether the statement is true or false