-The Figure Above Shows the Costs for the Typical Grower

question 374

Multiple Choice

-The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price of a ton of turnips is $1,200. The demand for turnips increases permanently. The turnip industry experiences neither external economies nor external diseconomies. In the long run, the price of a ton of turnips

• A) increases so it is above $1,200.
• B) is $1,200 and turnip growers will make normal profit.
• C) decreases so it is below $1,200, and turnip growers will make normal profit.
• D) decreases so it is below $1,200 and the turnip growers make an economic profit.

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Definitions:

Public Compliance

Conforming only outwardly to fit in with a group without changing private beliefs.

Normative Influence

The effect of the expectations of others on an individual's behavior, leading them to conform in order to be accepted or liked.

Normative Influence

The impact others have on us that causes us to comply with their behavior or beliefs to gain their approval and acceptance.

Social Contagion

The phenomenon where behaviors, attitudes, or emotions spread through groups or societies, akin to the transmission of diseases.