A firm that produces metal occupies four hectares of land. The firm produces 10 tons of output per day and sells its output at a price of $240 per ton. The firm does not engage in factor substitution as the price of land changes. Intra-urban transportation is on trucks, with a unit cost of $12 per ton per mile. The firm’s non-land cost is $560 per day. The firm exports its output via circumferential highway (i. e., beltway around the city). (a) Draw the firm’s bid-re

answer; whoever is willing and able to pay the price;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.