Suppose ABC Dairy is one firm competing in the perfectly competitive market for milk. Now suppose ABC Dairy decides to produce only organic milk. Which of the following best describes the effects of this change in the market?
a. ABC Dairy will still be a price taker because it is still operating in a perfectly competitive market.
b. ABC Dairy will have a monopoly on organic milk due to very high entry barriers.
c. The other dairy firms will produce with excess capacity, but ABC Dairy will be efficient.
d. ABC Dairy is differentiating its product and will likely be able to charge a higher price than before.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose ABC Dairy is one firm competing in the perfectly competitive market for milk. Now suppose ABC Dairy decides to produce only organic ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Suppose that you take $150 in currency out of your pocket and deposit it in your checking account. If the required reserve ratio is 8%, what is the largest amount (in dollars) by which the money supply can increase as a result of your action?
Answers (1)
Honeycutt Co. is comparing two different capital structures. Plan I would result in 12,700 shares of stock and $109,250 in debt. Plan II would result in 9,800 shares of stock and $247,000 in debt. The interest rate on the debt is 10 percent.
Answers (1)
Values tend to vary across generations because they are influenced by events in childhood and youth. For example, some parents lived through the Depression, and this experience led them to be risk takers in terms of their investments.
Answers (1)
Suppose a firm has the following Leontief production function: q = min{L, 3K} a. What is the optimal ratio of workers to capital? Are L and K perfect input complements or perfect input substitutes? b.
Answers (1)
When you start the idea process, what do you list first? A. Things about yourself B. Elements of your business plan C. Available franchises D. Business opportunities
Answers (2)
New Questions in Business
It would be faster for a human resource manager to use a (an) (blank) to alert employees about a company picnic.
Answers (1)
Why do economists use models? a. Models are used to add complexity to a simple world. b. Models allow us to study a simplified version of a complex world. c. Models allow us to control exogenous factors. d. Models make the world harder to understand.
Answers (2)
On January 1, Wei company begins the accounting period with a $45,000 credit balance in allowance for doubtful accounts. a. On February 1, the company determined that $9,800 in customer accounts was uncollectible; specifically, $2,400 for Oakley Co.
Answers (2)
Accounts are classified in the ledger a. alphabetically b. chronologically c. so that accounts used most often are listed first d. in accordance with their appearance in the financial statements
Answers (1)
In 1-2 sentences, explain how wage discrimination results in unequal pay.
Answers (1)