What is the most likely effect of the development of XBOX with DVD capabilities on the DVD player industry?
a. Increased price elasticity of demand for the DVD player industry because XBOX are complements
b. decreased price elasticity of demand for the DVD player industry because XBOX are complements
c. Increased price elasticity of demand for the DVD player industry because XBOX are substitutes
d. decreased price elasticity of demand for the DVD player industry because XBOX are substitutes
c
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Define "autonomous consumption spending."
What will be an ideal response?
Which statement is true about the Malthusian theory?
A. It predicts that famine can easily be averted. B. It is an application of the law of diminishing returns. C. It is unduly optimistic. D. It has proven true in most countries.
The Coase theorem applies to cases where _____
a. transactions costs are high b. transactions costs are obvious c. transactions costs are zero d. transactions costs are difficult to figure out
The marginal product curve:
A. typically decreases at low levels of input, but increases as input increases. B. shows how many extra outputs are created with each additional input. C. cannot be negative, since total output cannot be negative. D. None of these is true.