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Suppose Indiana Produces Only Steel and Corn, with Fixed Amounts

question 210

Essay

Suppose Indiana produces only steel and corn, with fixed amounts of land, labor, and capital resources.Which of the following best creates potential economic growth?
A.The unemployment rate in Indiana rises from 5% to 6%.
B.The Midwestern United States has a devastating drought.
C.The percentage of Indiana residents with a college degree rises from 25% to 30%.
D.The United States imports more and more low-cost steel from Asian countries.


Definitions:

Imperfectly Competitive Market

A market structure where all firms have some control over the prices because the products are differentiated and there are few participants.

Total-Product Schedule

A chart that shows the maximum output of a good achievable from different levels of input usage, holding technology constant.

Purely Competitive

A market structure characterized by a large number of small firms, homogeneity of product, and free entry and exit from the market.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input in production.

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