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Unformatted text preview: B. Firms perceive that the marginal cost of producing the good has increased. C. Firms perceive that the marginal benefit of producing the good has increased. ** D. Customers switch to substitute goods. 4. The firm in a competitive industry perceives its demand schedule to be horizontal because it… A. Has a substantial control over its price. B. Can sell only a certain amount of the good as if there were a quota. C. Can sell as much as it wants at the market price. ** D. Has a constant marginal cost of production. 5. Hours Cans Recycled Reservation Price 1 600 $0.01 2 1000 $0.015 3 1300 $0.02 4 1500 $0.03 5 1600 $0.06 What is Harry’s producer surplus if the price he receives for recycling a can is 3 cents? A. $0.00 B. $21.00 ** C. $45.00 D. $92.00...
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This note was uploaded on 07/28/2008 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.
- Spring '07