Prices in resource markets
a. provide users with information concerning the relative scarcity of resources.
b. encourage the use of a resource now if its price is expected to rise in the future.
c. provide suppliers with little incentive to develop more of those resources that are intensely demanded by users.
d. have little impact on productive decisions unless they are closely regulated by the government.
A
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A normative statement i. can be tested as to whether it is true or false. ii. is considered negative. iii. depends on a person's values
A) i only B) iii only C) i and iii D) ii and iii E) i, ii, and iii
Dan is the owner of a price-taking company that manufactures sporting goods. One particular facility Dan owns produces baseball bats and baseball gloves. His cost function for baseball bats is CB(QB, QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG, where QB is the output level for bats and QG is the output level for gloves. Dan's cost function for baseball gloves is CG(QB, QG) = 50QG + QG2 + QGQB, and the marginal cost is MCG = 50 + 2QG + QB. The price of a baseball bat is $240 and the price of a baseball glove is $150. What is the profit-maximizing sales quantity for baseball bats?
A. 10 B. 20 C. 30 D. 60