If bottled water, soft drinks and juices are included in the definition of the beverage market, then the relevant definition of the market is defined by
A. the low degrees of substitution between products in the market.
B. the high degrees of substitution between products in the market.
C. a low level of competition among firms producing those products.
D. the locations of products that are produced.
Answer: B
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Answer the following statement true (T) or false (F)
If the average cost of producing 10 sweaters is $6.50 and the marginal cost of producing the tenth sweater is $6.75, the average cost of producing 10 sweaters will be:
A. less than $6.50. B. $6.50. C. exactly $6.75. D. more than $6.50.
The change in the quantity demanded of gas because of increasing gas prices over the last decade:
A. was more elastic than it has been in the last six months. B. has become a non-issue for people now that they are used to higher gas prices. C. has been relatively the same over both time periods. D. was less elastic than it has been in the last six months.
If Tom purchases a comprehensive auto insurance policy because he knows he is a reckless driver, his behavior is an example of moral hazard.
Answer the following statement true (T) or false (F)