Homework Clinic
Social Science Clinic => Economics => Topic started by: mrsjacobs44 on Jun 29, 2018
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Describe the choices that producers make and explain why producers are efficient on the market supply curve.
What will be an ideal response?
Question 2
A consequence of increasing marginal costs of producing digital music players in Japan is
A) Japan will stop short of complete specialization in the production of digital music players.
B) Japan will likely impose trade restrictions on imported digital music players.
C) Japan will not export digital music players.
D) Japan will import digital music players from countries that don't experience increasing marginal costs.
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Answer to Question 1
Competitive firms maximize profit. We derive the firm's supply curve by finding the profit-maximizing quantity at each price, which means that firms are efficient and get the most value out of their resources at all points along their supply curve.
Answer to Question 2
A