The Demand and Supply Curves Shown Below Apply to a Competitive

question 117

Multiple Choice

The demand and supply curves shown below apply to a competitive market for a factor used in the production of widgets. FIGURE 13-2
-Refer to Figure 13-2.This factor market is initially in equilibrium at point B.Assume that there is a decrease in the demand for widgets and a new equilibrium is established at point A.Which of the following statements about point A is true?

• A)Total economic rent is $120.
• B)The marginal revenue product of the 20th unit of the factor is $6 and economic rent of the 20th unit of the factor is $0.
• C)The marginal revenue product of the 20th unit of the factor is $120 and economic rent of the 20th unit of the factor is $6.
• D)Total transfer earnings are $120.
• E)Transfer earnings for the 20th unit of the factor are $6 and economic rent of the 20th unit of the factor is $2.

Understand the rules and conventions in biological nomenclature.

Understand the basis and procedural steps for appealing decisions by administrative agencies.

Grasp the constitutional guarantees that bind the "fourth branch" of government.

Recognize the role and standardization of agency proceedings, including settlements and consent orders.

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Definitions:

Tabula Rasa

A philosophical theory that individuals are born without built-in mental content and that all knowledge comes from experience or perception.

John Locke

A 17th-century English philosopher and physician, considered one of the most influential of Enlightenment thinkers and known as the "Father of Liberalism."

Historical Eras

Designates distinct periods of human history, each characterized by unique developments in culture, technology, and social structure.

Miniature Adults

An outdated concept regarding children as small adults capable of taking on adult responsibilities and rational thinking.