Land of Many Lakes (LML) Sells Butter to a Broker

question 228

Multiple Choice

Land of Many Lakes (LML) sells butter to a broker in Albert Lea, Minnesota. Because the market for butter is generally considered to be competitive, LML does not

• A)choose the quantity of butter to produce.
• B)set marginal revenue equal to marginal cost to maximize profit.
• C)have any fixed costs of production.
• D)choose the price at which it sells its butter.

---

Definitions:

Middle Colonies

The colonial region in the 17th and 18th centuries that included the modern-day states of New York, New Jersey, Pennsylvania, and Delaware, known for diverse populations and religious tolerance.

New England Colonies

The early 17th-century British settlements on the northeast coast of North America, including Massachusetts, Connecticut, Rhode Island, and New Hampshire, known for their Puritan foundation.

King George's War

The North American theater of the War of Austrian Succession (1740-1748) involving France, Britain, and Spain, characterized by battles for control over North America.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured as a percentage increase in real Gross Domestic Product (GDP).