The Hard Times Concrete Company Is a Monopolist in the Concrete

question 4

Multiple Choice

The Hard Times Concrete Company is a monopolist in the concrete market.It uses two inputs, cement and gravel, which it buys in competitive markets.The company's production function is q = c^1/2g^1/2q, where q is its output, c is the amount of cement it uses, and g is the amount of gravel it uses.If the price of cement goes up, the firm's demand for cement

• A)goes down and its demand for gravel goes up.
• B)and its demand for gravel go down.
• C)goes down and its demand for gravel may go up, down, or remain the same, depending on the demand function for concrete.
• D)may go up, down, or not change, depending on whether the cement's elasticity of demand is less than, equal to, or greater than 21.
• E)could go up or down but must move in the opposite direction from its demand for gravel.

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Definitions:

Agricultural Subsidies

Government financial assistance to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Farm Act

The Farm Act typically refers to legislation aimed at supporting the agricultural sector, including provisions for subsidies, insurance, conservation, and trade.

2014 Agriculture Act

A comprehensive statute that governs agricultural and food policy in the United States, also known as the 2014 Farm Bill.

Farm Subsidies

Financial support and assistance provided by the government to farmers and agribusinesses to stabilize food prices, ensure a sufficient food supply, and support farmers' incomes.