The elasticity closest to unit elastic would be
A. 0.
B. 0.2.
C. 1.4.
D. 5.
C. 1.4.
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Which of the following would not be studied in microeconomics?
A. How an early freeze in California will affect the price of fruit. B. Whether the federal budget should be balanced. C. Whether to study or watch TV tonight. D. How individual firms decide how much to produce.
Harry's Hookahs incurs $700,000 per year in explicit costs and $500,000 in implicit costs. The company earns $1.4 million in revenues and has $3.7 million in net worth. Based on this information, what is the accounting profit for Harry's Hookas?
A) $200,000 B) $700,000 C) $900,000 D) $1.1 million
An important difference between perfect competition and monopoly is
A. the monopoly faces an inelastic demand curve and the perfect competitor faces an elastic demand curve. B. a monopoly is profitable and a perfect competitor is not. C. a monopoly is not regulated by the market, while a perfect competitor is regulated by the market. D. the monopoly faces a downward sloping demand curve and the perfect competitor faces a horizontal demand curve.
Which of the following products would most likely be produced in a monopolistically competitive market?
A) corn B) crude oil C) local water supply D) pizza