« previous next »

Author Question: Farmer Fanny sells her crops in a perfectly competitive market. If she produces 500 bushels for ... (Read 155 times)

tatyanajohnson

  • Hero Member
  • *****
  • Posts: 569
on: Jun 30, 2018
Farmer Fanny sells her crops in a perfectly competitive market. If she produces 500 bushels for total revenue of 3,000 and if harvesting the 501st bushel would raise her total cost from 2,500 to 2,510, her
 a. revenue will increase by 4 if she harvests the 501st bushel
  b. revenue will fall by 4 if she harvests the 501st bushel
  c. average fixed cost will rise if she harvests the 501st bushel
  d. profit will fall by 10 if she harvests the 501st bushel
  e. profit will fall by 4 if she harvests the 501st bushel

Question 2

Suppose that a monopolist must choose between two points on its demand curve: it can sell 100 units for 3 each, or it can sell 140 units for 2 each. Which of the following is true?
 a. The monopolist is facing elastic demand.
  b. The monopolist is facing unit elastic demand.
  c. The monopolist is facing inelastic demand.
  d. The monopolist is facing perfectly elastic demand.
  e. The elasticity of demand cannot be determined with the information given.


Chelseyj.hasty

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Faulty outlooping produces lambda phage containing bacterial DNA Faulty outlooping produces lambda phage containing bacterial DNA
African farmers use chili peppers to ward elephants off their crops. Clever! African farmers use chili peppers to ward elephants off their crops. Clever!
Competitive inhibitor Competitive inhibitor
A farmer has 100 acres of land on which she plans to grow wheat and corn. Each acre of wheat ... A farmer has 100 acres of land on which she plans to grow wheat and corn. Each acre of wheat ...
Markets and Institutions Market Story Problem Markets and Institutions Market Story Problem
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: Effect of blood chemistry - stimuli, hyperventilation response and hypoventilation response

For a complete list of videos, visit our video library