Answer:
An increase in the production leads to decline in the price. Producers are likely to supply more at the lower price or the existing price, considering the increase in production. If there is a 20 percent increase in the production, then it tends to increase the supply. An increase in supply will have a negative impact on price.
The effect of the increase in production on price is shown in the above figure. A twenty percent increase in the production causes an increase in the supply. Excessive supply causes a reduction in the price. Hence, when the supply increases from P1 to Q2, the price decreases to P2 from P1.
Answer:
The correct answer is letter "A": Mary Beth grows cotton. She finds that she can always sell her entire crop at the market price. However, if she asks a price that is even slightly higher she cannot sell any of her cotton.
Explanation:
Perfect Competition is a market where competition is at the highest degree possible. Perfect competitive markets have the following characteristics:
- <em>All companies sell the same goods or services. </em>
- <em>All companies are price takers. </em>
- <em>All firms have relatively small market shares. </em>
- <em>Buyers have full product and price information. </em>
- <em>The industry is characterized by low or no barriers to entry and exit of the industry.</em>
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Thus, <em>in Mary Beth's case, she cannot ask for a different price than the one of the market because in a perfectly competitive market it is controlled by supply and demand. Companies cannot set the price.</em>
<span>Economists would describe Jeff as a user of a public good. Jeff would be considered this because he is consuming something, but this consumption does not reduce the availability of the thing being consumed for others. Jeff is using the cable service, but this does not prevent anyone else from receiving and watching a cable service.</span>
I think you will acccess the money when ur 18 years old
