sea ha·a»een tes demand, what wldn es a result of recent hig\', entree proces, i

Question

sea ha·a»een tes demand, what wldn es a result of recent hig', entree proces, inereased dsmana ecww.mw proft at tho present ein. . If the te" industry i.._rlo.ly ir sufficient time were allowed for adjustment to the incressed for the tea industrys A. increasefall C. deereaserise isappear increase rise ear Output Price Reonomie Profit all ncrea D. decrease rise disappear 24. "In market economies, long run prices must cover rent, interest, and labor cost of productio plus a profit return to the business owners. In socialist economies all natural respurces all capital goods are owned by the government. Hence, in socialist economies labor costa are the only costa of production, and goods can be sold at lower prices than in market economies The lower prices of the socialist economies indicate that they are economically more efficient than market economies ls the conelusion essentially correct or incorrect? A. Correct. The lower prices found in socialint economies indicate that basic goods like food B. Incorrect. The relative efficiency of different forms of economie organization depends on C. Correct. The lower prices found in socialist economies indicate that the real cost of production D. Incorrect. The higher prices which are found in market economies indicate that their output and elothing are more widely available than in market economies. Therefore, the socialist economies are more efficient the allocation of all scarce resources, not on prices that are ansigned to resources in socialist economies is less than in market economies and that socialist economies are more efficient. is more valuable than that of socialist economies. Therefore, market economies are more efficient than socialist economies. 25. In producing two goods (one with an external benefit, the other with an external cont), an unregulated competitive market would produce: A. too much of both goods. B. too little of both goods. C. too much of the good with the external benefit, and too little of the good with the external cost too little of the good with the external benefit, and too much of the good with the external cost. D. 26. A state legislature increased the tax on beer sold within the state from $.50 to $.90 per gallon. A supporter said the tax would "tend to bring about more equality in the distribution of after. tax income within the state. This statement on the effect of the tax increase would be correct only if it could be shown that: A. the quantity of beer purchased within the state is highly responsive to changes in its price. B. people with small incomes tend to buy more beer each year than people with larger incomes. C. people with large incomes tend to spend the same proportion of their incomes on beer each year as do people with smaller incomes D. with large incomes tend to spend a larger proportion of their incomes on beer each year than people with smaller incomes

Explanation / Answer

23. D) output decreases price rise and economic profit disappeared. As firm is perfectly competitive so it would never earn economic profit always earn normal profit secondly due to getting sufficient time period coffee price come to its original price which reduces tea demand and increase its price (effct of substitute price to the demand of the good).

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.