The production decisions of perfectly competitive firms follow one of the Ten Principles of Economics, which states that rational people
a. consider sunk costs.
b. equate prices to the average costs of production.
c. prefer to purchase products from smaller rather than larger firms.
d. think at the margin.
d
Economics
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A rise in the price of cabbage from $14 to $18 per bushel increases the quantity supplied from 4,000 to 6,000 bushels. The elasticity of supply is
A) 0.6. B) 0.8. C) 1.0. D) 1.6.
Economics
U.S. sugar quotas cost each person in the U.S. thousands of dollars per year due to higher prices
Indicate whether the statement is true or false
Economics