Given the scenario described, if the market price of hammers decreased from $17 to $12:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.
A. producer participation in the market would increase.
B. producer participation in the market would decrease.
C. producer participation in the market would not be affected.
D. total producer surplus would remain unchanged.
B. producer participation in the market would decrease.
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Differences in the stock of human capital between nations are an example of a(n):
A) proximate cause of prosperity. B) implicit cause of prosperity. C) explicit cause of prosperity. D) fundamental cause of prosperity.
The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then
A) a subsidy of $10,000 per student paid to colleges will achieve efficiency. B) a tax of $10,000 per student imposed on the colleges will achieve efficiency. C) 10 million students per year is the efficient number students. D) None of the above answers are correct.