If Your Farm Had the Only Known Source of a Rare

question 185

Multiple Choice

If your farm had the only known source of a rare cocoa bean needed to make chocolate-covered peanuts,your monopoly would result from:

• A)control of a scarce resource or input.
• B)technological superiority.
• C)increasing returns to scale.
• D)government-set barriers.

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Definitions:

Price Paid

The actual amount of money exchanged for a good or service.

Supply and Demand

Fundamental economic model describing how prices and quantities of goods and services are determined in a market based on the relationship between the quantity supplied and the quantity demanded.

Price Floor

A government or regulatory minimum price set for a commodity, below which it cannot legally be sold.

Farm Incomes

The earnings from agricultural activities that farmers receive, including profits from selling crops and livestock.