55. Because of bad weather, there is a decrease in the supply of broccoli. (In o

Question

55. Because of bad weather, there is a decrease in the supply of broccoli. (In other words, the supply curve for broccoli shifts to the left.) What will happen to the equilibrium price and quantity of broccol a. Equilibrium price will rise, equilibrium quantity will rise. b. Equilibrium price will rise, equilibrium quantity will fall. c. Equilibrium price will fall, equilibrium quantity will rise. d. Equilibrium price will fall, equilibrium quantity will fall e. Not enough information 56. At the current level of output for Nobuhiko Corporation, marginal cost is equal to average total cost. This means that a. average total cost is increasing. b. average total cost is decreasing. c. average total cost is at its minimum value. d. marginal cost is at its minimum value. e. (c) and (d). 57. For any firm for which price is greater than or equal to average variable cost (regardless of market structure), profits will be maximized when the firm chooses to produce and sell the quantity at which a. total revenue is maximized. b. marginal revenue is equal to marginal cost. c. price is equal to average total cost. d. price is equal to marginal cost. e. demand is inelastic. 58. Zilltorp Corporation is a perfect competitor. The market price for a unit of Zilltorp's output is $20. The firm's marginal cost is $16, and its average total cost is $18. This suggests that the firm is suffering losses, but it should stay in business as long as average variable cost is a less than or equal to the price. b. c. d. e. the firm is making positive profits. the firm could increase its profits by expanding output. the firm could increase its profits by reducing output. (b) and (c). KEEP GOING: REMEMBER TO ANSWER ALL 60 QUESTIONS.

Explanation / Answer

55. Supply and price are inversely related to each other. When supply decreases , fewer quantities are being supplied into the market so the equilibrium quantity will fall.

So when supply of broccoli decreases ,

b) equilibrium price will rise, equilibrium quantity will fall.

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

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