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 79 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?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

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?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
PEPCK isozymes provide alternative routes to PEP and cytoplasmic reducing equivalents PEPCK isozymes provide alternative routes to PEP and cytoplasmic reducing equivalents
Fate of reducing equivalents derived from fatty acyl-CoA dehydrogenation Fate of reducing equivalents derived from fatty acyl-CoA dehydrogenation
The political process is fraught with opportunities for opponents of climate legislation The political process is fraught with opportunities for opponents of climate legislation
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ... Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...
The study of how traits such as flower color are passed from generation to generation provided the m The study of how traits such as flower color are passed from generation to generation provided the m
Video: The Vestibular System

For a complete list of videos, visit our video library