Consider the market for baseball caps. there are many producers in this market, and we assume that the technology of production is identical among these producers. a typical producer in this market has a u-shaped average variable cost curve with the minimum average variable cost at $2.50, and a u-shaped average total cost curve with the minimum average total cost at $3.50. what does the market supply of baseball caps look like in the long run? choose one: a. an upward-sloping curve that starts at the price of zero b. an upward-sloping curve that starts at the price of $3.50, with zero supply at a price less than $3.50 c. an upward-sloping curve that starts at the price of $2.50, with zero supply at a price less than $2.50 d. a horizontal line at a price of $3.50

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.

Suppose that real interest rates increase across europe. this development will u. s. net capital outflow at all u. s. real interest rates. this causes the loanable funds to because net capital outflow is a component of that curve.

The goal of an economist who formulates new theories is to a. provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works. b. provoke stimulating debate in scientific journals. c. contribute to an understanding of how the world works. d. demonstrate that economists, like other scientists, can formulate testable theories.