What will an individual do differently as a seller in the black market in the long...

What will an individual do differently as a seller in the black market in the long run?

A.He or she will substitute away from producing the product.

B.He or she will substitute toward producing the product.

C.When there exists a binding price floor, he or she will be able to sell the good at a higher price.

D.When there exists a binding price ceiling, he or she will be able to sell the good at a lower price.

E.What he or she does as a seller in the long run will be no different from what he or she does in the short run.

Expert Solution

A.He or she will substitute away from producing the product.

Explanation: A seller disposes the surplus product in the black market and in the long-run the seller would substitute away from producing the product.

Rahul Sunny answered 2 years ago

4. What, exactly, is a "black market"? Please discuss an example of a black market that...

4. What, exactly, is a "black market"? Please discuss an example of a black market that is new and original.

How do businesses operate differently based on the market structure they fall in?

What are the buyer's remedies when the seller delivers nonconforming goods? What can the seller do...

What are the buyer's remedies when the seller delivers nonconforming goods? What can the seller do to preserve the contract?

Suppose a perfectly competitive market is composed of 100 identical sellers (price-takers). Each individual seller faces...

Suppose a perfectly competitive market is composed of 100 identical sellers (price-takers). Each individual seller faces the following private marginal costs of production: Quantity 1 2 3 4 5 6 7 Marginal Cost 50 40 60 80 100 120 140 a. If the price of the good is $100, how many units would this firm produce? How many would be produced in the market? b. If the price of the good is $120, how many units would this firm produce?...

what do top students do differently? Please respond in 2-3 paragraphs.

At what point do all four market structures maximize profits? In the long-run do firms in...

At what point do all four market structures maximize profits? In the long-run do firms in a perfectly competitive market structure have an incentive to increase output? Please provide real-life examples in your response. Who determines the price for perfectly competitive market structures? Can you provide a real-life example in which monopolistic market structures should be scrutinized by Anti-Trust Authorities? What about Amazon?

In what type of market do the actions of any one seller have a significant impact on the profits of all other sellers?

In what type of market do the actions of any one seller have a significant impact on the profits of all other sellers? A. A monopoly B. Perfect competition C. Monopolistic competition D. An oligopoly

Which of the following is true? If the price elasticity of demand for an individual seller...

Which of the following is true? If the price elasticity of demand for an individual seller is h = 1.62, then the firm’s demand is inelastic. b. If the price elasticity of demand for an individual seller is h = 2.8, then the firm’s demand is unitary elastic. c. The price elasticity (in absolute value) of demand for a particular seller, or brand, is always smaller than the overall market elasticity of demand. d. The price elasticity (in absolute value)...

How are companies looking differently at innovation and market differentiation?

1) Imagine a perfectly competitive market that is currently in a long-run equilibrium with price=$10, individual...

1) Imagine a perfectly competitive market that is currently in a long-run equilibrium with price=$10, individual firm quantity set at 10 units, and 100 active firms. Scientific discoveries about the health benefits of this good lead to a permanent increase in demand for this good (but no changes in firm costs). Once the market is able to fully adjust, then compared to the original long-run equilibrium, the new long-run equilibrium will have A) a lower price and fewer active firms...

Question