This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose a legislation passed by the government encourages domestic oil exploration thereby reducing ... (Read 14 times)

burton19126

  • Hero Member
  • *****
  • Posts: 532
on: Jun 30, 2018
Suppose a legislation passed by the government encourages domestic oil exploration thereby reducing petroleum imports substantially. If the cost of production is uniform for all producers, which of the following will be observed in the petroleum market?
 a. The world price of petroleum would decline.
  b. The domestic price of petroleum would decline.
  c. The world price of gasoline will remain unaffected.
  d. Crude oil consumption in the domestic and the world market would decrease.

Question 2

If at the profit-maximizing level of output, a typical perfectly competitive firm's price is greater than its average total cost, the firm should increase output.
 a. True
  b. False
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

shaikhs

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

False


burton19126

  • Hero Member
  • *****
  • Posts: 532
Reply #2 on: Jun 30, 2018
Thank you :)


shaikhs

  • Sr. Member
  • ****
  • Posts: 312
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

The world attempted to deal with Somalia as if it were a real country but painfully learned that Som The world attempted to deal with Somalia as if it were a real country but painfully learned that Som
Growth of Government Spending, 1870–2009 Growth of Government Spending, 1870–2009
Government Corruption versus GDP per Capita, 2009 Government Corruption versus GDP per Capita, 2009
A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ... A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ...
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Presidential success under unified and divided government, from Eisenhower to trump Presidential success under unified and divided government, from Eisenhower to trump
Video: Neuron Structure Animation

For a complete list of videos, visit our video library