Price ceilings likely result in the accumulation of surpluses. None of the above. Consumers learn that apples have been sprayed with a carcinogenic substance, some of which remains in the apple juice and applesauce favored by young children. A new growth hormone for dairy cows dramatically increases milk production. A chicken virus drastically reduces the supply of eggs.
Research discovers that oat bran reduces blood cholesterol and reduces the risk of heart disease.
When economies of scale are present, costs per unit decline as output expands. All of the above are correct. When a proft-maximizing monopolist produces an output where marginal revenue is less than marginal cost, the firm is making a profit. A pure monopoly occurs when all firms sell homogeneous goods.