The Figure Given Below Represents an Imperfectly Competitive Resource Market

question 45

Multiple Choice

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-On account of a massive construction boom in a country, the demand for iron ore increases substantially. This causes iron ore prices to escalate. Producers increase iron ore mining considerably in the short run, in spite of knowing that this will adversely affect future availability of ore. Which of the following is most similar to the scenario described above?

• A)Corn producers hoard their supplies in order to induce a price hike.
• B)Petroleum manufacturers increase extraction in response to sky-rocketing fuel prices.
• C)The government of a country makes aforestation mandatory for lumber firms.
• D)Impressive revenue generation induces the government of a country to impose additional fuel surcharge.
• E)To discourage smoking, the government of a country increases sales tax on cigarettes.

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Definitions:

Trunk

The main part of the human body not including the head, neck, and limbs; also the main structural part of a tree.

Plantar Surface

The bottom part of the foot that comes in direct contact with the ground during standing or walking.

Foot

The lower extremity of the leg below the ankle, on which a person stands or walks.

Antebrachial Region

The region of the human body that corresponds to the forearm, extending from the elbow to the wrist.