The Production of Methamphetamine (Meth)is a Social Problem in the Midwest.Iowa

question 17

Multiple Choice

The production of methamphetamine (meth) is a social problem in the Midwest.Iowa is considering two potential programs: Operation Methbust would increase the number of sheriffs' deputies to search out and destroy methamphetamine labs.Operation Say No to Meth would increase the training required of public school teachers so that they could better educate students about the health risks of using meth.Assuming that each program were successful,which of the following statements is correct?

• A)Both Operation Methbust and Say No would reduce the demand for meth.
• B)Both Operation Methbust and Say No would reduce the supply of meth.
• C)Operation Methbust would reduce the demand for meth;Operation Say No would reduce the supply of meth.
• D)Operation Methbust would reduce the supply of meth;Operation Say No would reduce the demand for meth.

Describe the dynamic adjustments in supply and demand within various types of industries (decreasing-cost, increasing-cost, constant-cost) under changes in market conditions.

Analyze the cost structure and profitability (economic profits, losses, and normal profits) of firms operating in perfectly competitive markets.

Understand the concept of long-run adjustments in purely competitive markets including entry and exit of firms.

Comprehend that in the long run, purely competitive markets yield zero economic profits due to the entry or exit of firms.