Author Question: Individual firms in perfectly competitive industries are price takers because A) the government ... (Read 108 times)

segrsyd

  • Hero Member
  • *****
  • Posts: 530
Individual firms in perfectly competitive industries are price takers because
 
  A) the government sets all prices.
  B) buyers set prices.
  C) firms decide together on the best price to charge.
  D) each individual firm is too small to affect the market price.

Question 2

Farmer Jones knows that the marginal cost to produce a bushel of tomatoes is 5 per bushel. He also knows that a consumer is willing to pay a maximum of 9 for the bushel. The price of the bushel is 6 and Farmer Jones sells his bushel for 6.
 
  On this bushel, Farmer Jones earns a producer surplus equal to A) 1.
  B) 3.
  C) 5.
  D) 6.


Danny Ewald

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

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

For a complete list of videos, visit our video library