3 Output, Price, and Profit in the Short Run

question 397

Multiple Choice

3 Output, Price, and Profit in the Short Run
-If there are 1,000 rutabaga farms, all perfectly competitive, an increase in the price of fertilizer used for growing rutabagas will

• A) have no effect on the total quantity of rutabagas supplied, because no farm has enough market power to raise the price.
• B) have no effect on the total quantity of rutabagas supplied, because each farm's supply curve is a vertical line.
• C) decrease the total quantity of rutabagas supplied, because each farm's supply curve shifts leftward.
• D) reduce the total quantity of rutabagas supplied, because each farm's supply curve is a horizontal line and will shift upward.

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Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out information.

Peripheral Nervous System

The part of the nervous system outside the brain and spinal cord, connecting the central nervous system to limbs and organs.

Knee-Jerk Reflex

A reflexive action in which the knee extends (jerks) automatically when the patellar tendon is tapped, assessed in neurological examinations.

Central Nervous System

Part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out information.