In the base year: nominal GDP is always larger than real GDP because prices are held constant. real GDP is always larger than nominal GDP because…
September 4, 2020
EST FOUR Multiple Choice Questions (Enter your answers on the enclosed answer sheet) 1) What is the defi nition of “goods” under Article 2 of the UCC?…
September 4, 2020

Pic Inc. produces plastic toothpicks that it sells to distributors in the Southwest. During the early 1990s, the price of the plastic it uses to produce toothpicks fell by 46 percent, due to a local glut of recycled plastic containers. Assuming that the market for plastic toothpicks most closely resembles that of perfect competition and that other firms in the industry do not experience similar cost savings in the short run, what impact would this have on the profit-maximizing output, price, and profits of Pic Inc.? Please explain precisely.

Pic Inc. produces plastic toothpicks that it sells to distributors in the Southwest. During the early 1990s, the price of the plastic it uses to produce toothpicks fell by 46 percent, due to a…

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