What best describes the impact of the cotton gin?
a. A decrease in the price and an increase in the quantity of cotton.
b. An increase in the price and a decrease in the quantity of cotton.
c. Decreases in both the price and quantity of cotton.
d. Increases in both the price and quantity of cotton.
a. A decrease in the price and an increase in the quantity of cotton.
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Which of the following statements is false?
A) Marginal cost will equal average total cost when marginal cost is at its lowest point. B) When marginal cost is greater than average total cost, average total cost will rise. C) Marginal cost will equal average total cost when average total cost is at its lowest point. D) When marginal cost is less than average total cost, average total cost will fall.
In the game in Scenario 13.14,
A) R's dominant strategy is Q = 100; C has none. B) C's dominant strategy is Q = 100; R has none. C) Q = 100 is a dominant strategy for both R and C. D) Q = 100 dominates Q = 150 for both firms. E) the dominant strategy for both players is to choose the same level of output, so long as it is not 150.
Why is it rational for a consumer to begin buying a second type of good after buying a certain amount of the first type of good?
a. The price of the first type of good will continue to increase with each successive purchase. b. The total satisfaction gained from the first type of good will continue to decline with each successive purchase. c. The marginal satisfaction gained from the first type of good will continue to decline with each successive purchase. d. The price of the second type of good will continue to decrease with each successive purchase.
Recall the Application about the 1998 merger between Pennzoil and Quaker State to answer the following question(s). The merger resulted in a company with a market share of 38 percent: 29 percent from Pennzoil and 9 percent from Quaker State.Recall the Application. A recent study concluded that following the merger between Pennzoil and Quaker State, the new company ________ the price of Pennzoil products and ________ the price of Quaker State products.
A. increased; increased B. decreased; increased C. increased; did not change D. did not change; increased