Question

QUESTION 35 A firewood supplier has a very seasonal demand for its product. Its transport trucks Lay idle during the warmer parts of the year. It can exploit economies of scope if a. It merges with a manufacturer of wooden Christmas ornaments b. It turns into a rental trucking company during the warmer months for other seasonal producers such as ice-cream makers c It starts producing other seasonal products that would sell mostly during the warmer months such as rustic lawn chairs od B and C QUESTION 36 A sudden fall in the market demand in a competitive industry leads to a. A short run market equilibrium price higher than the original equilibrium b. A market equilibrium price lower than the short run price c. Some firms exiting the market d. All of the above QUESTION 37 A supply curve slopes upwards because a the quantity supplied in insensitive to price b the higher the price the higher the quantity that the sellers are willing to supply c. an increase in ptice brings the quantity sold down to zero d the higher the price the lower the quantity that the sellers are willing to supply Click Save and Submit to save and submit Chick Save All Answers to save all answers

Answer 1

a) Both B and C are correct that will allow the firm to earn more revenue using the same truck in the warmer months. the answer is "D".

b) "D"

All the given options are correct, this will decrease the price of the goods in the market and current equilibrium will be at a higher cost than actual equilibrium, some firms will leave the market in the long run.

c) "B"

it slopes upward because at a higher price the seller will be supplying more.