Assume there are 1000 plumbers in the city of Leakytown. Some plumbers are better than others, but all plumbers repair broken pipes. Which of the following options is most likely to be true according to economic theory? a. economic theory cannot predict how the price for the best plumbers will compare to other prices in this scenario. b. The best plumbers will charge a price similar to the other plumbers and will earn a normal economic profit. C. The best plumbers will charge a price significantly higher than others, and they will increase their supply by doing so. d. The best plumbers will be able to charge significantly more to repair a broken pipe and sustain a bigger economic profit in the long run.
Assume there are 1000 plumbers in the city of Leakytown. Some plumbers are better than others, but all plumbers repair broken pipes. Which of the following options is most likely to be true according to economic theory? a. economic theory cannot predict how the price for the best plumbers will compare to other prices in this scenario. b. The best plumbers will charge a price similar to the other plumbers and will earn a normal economic profit. C. The best plumbers will charge a price significantly higher than others, and they will increase their supply by doing so. d. The best plumbers will be able to charge significantly more to repair a broken pipe and sustain a bigger economic profit in the long run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Assume there are 1000 plumbers in the city of Leakytown. Some plumbers are
better than others, but all plumbers repair broken pipes. Which of the following
options is most likely to be true according to economic theory?
a.
economic theory cannot predict how the price for the best plumbers will
compare to other prices in this scenario.
b.
The best plumbers will charge a price similar to the other plumbers and will
earn a normal economic profit.
C.
The best plumbers will charge a price significantly higher than others, and they
will increase their supply by doing so.
d.
The best plumbers will be able to charge significantly more to repair a broken
pipe and sustain a bigger economic profit in the long run.
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