Answer:
(A) True
Explanation:
Differential cost is the difference between the cost to produce Product O and produce Product P; in this case it’s the additional cost of $13 per pound to produce
So the statement “The differential cost of producing Product P is $13 per pound” is true
Answer:
B. The Sherman Act allows the US government to regulate activities that restrain competition and trade
Explanation:
The Sherman Antitrust Act of 1890 was first legislation enacted by US congress. It was brought into force to regulate competition and trade among enterprises. This act prohibits agreement in restraint of trade or interference of power in trade like price fixing, bid rigging, etc.
The Sherman Act did not work for long as it restrict the business merger and people are confused about knowing the motive of the act as it is not designed properly.
Equilibrium price will fall; equilibrium quantity will fall.
What does Equilibrium price mean?
An Equilibrium price, also known as a market-clearing price, is the consumer cost assigned to some product or service such that supply and demand are equal, or close to equal.
The manufacturer or vendor can sell all the units they want to move and the customer can access all the units they want to buy.
What is Equilibrium quantity?
Equilibrium quantity is when there is no shortage or surplus of a product in the market.
Supply and demand intersect, meaning the amount of an item that consumers want to buy is equal to the amount being supplied by its producers.
Learn more about Equilibrium price and quantity here:
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