Sweet Husks is a perfectly competitive corn farm. Currently, the expected price of an ear of corn is $0.20 and, at its current production level, Sweet Husks has a marginal cost of $.20 per ear. Which of the following is true regarding Sweet Husks?
A) To maximize expected profit, Sweet Husks should increase production.
B) To maximize expected profit, Sweet Husks should decrease production.
C) To maximize expected profit, Sweet Husks should double production.
D) Sweet Husks is maximizing expected profit.
D) Sweet Husks is maximizing expected profit.
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Economists generally support
a. trade restrictions. b. government management of trade. c. export subsidies. d. free international trade.
Answer the following statements true (T) or false (F)
1. The creation of an adequate infrastructure in a nation is primarily the responsibility of the public sector. 2. The corruption and poor administration that are common to the public sectors of many DVCs suggest that government may not be very effective in promoting economic growth. 3. The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital. 4. An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors. 5. In recent years, a greater proportion of private capital flows to DVCs has been direct foreign investment rather than loans to DVC governments.