When economic losses exist in the cereal market, for example, this is an indication that
A. Society's scarce resources are being used in the best way.
B. Not enough firms are producing cereal (assuming that the market is perfectly competitive).
C. The goods and services that society is giving up (the opportunity cost) are more valuable than the cereal being produced.
D. The WHAT to produce question is being answered efficiently.
Answer: C
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The short run:
A. means the firm cannot increase or decrease at least one of its inputs. B. means that output cannot be changed. C. means the price of output is fixed. D. All of these are true.
Traditional economists base their models of human behavior on simplifying assumptions regarding rationality and decision making
a. True b. False Indicate whether the statement is true or false
Diet Coke is a close substitute for Diet Pepsi. When Coca-Cola introduced Diet Coke in 1982, the price elasticity of demand for Diet Pepsi ________ and PepsiCo's ability to raise revenues through price increases ________.
A. decreased; was reduced B. increased; was reduced C. had no effect; was reduced D. increased; increased
Which of the following expressions represents the dollar price of foreign currency?
A) EP/P B) EP/P C) 1/E D) E E) none of the above