Table 14.3In Table 14.3, Market 2 would be in equilibrium if buyers believed plums account for:
A. about 16.67% of the market.
B. about 33.33% of the market.
C. about 66.67% of the market.
D. about 88.89% of the market.
Answer: B
You might also like to view...
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Constant returns to scale means that, given any constant x > 0
A) xzF(xK, xNd)= zF(xK, xNd). B) xzF(xK, xNd) > zF(xK, xNd). C) xzF(xK, xNd) < zF(xK, xNd). D) xzF(xK, xNd) = zxF(K, Nd).
Suppose that a firm has to pay a 10% tax on its total revenue. This has the effect of
a. flattening marginal cost. b. increasing marginal revenue. c. decreasing marginal cost. d. decreasing marginal revenue.
When a consumer is purchasing the best combination of two goods, X and Y, subject to a budget constraint, we say that the consumer is at an optimal choice point. A graph of an optimal choice point shows that it occurs
a. along the highest attainable indifference curve. b. where the indifference curve is tangent to the budget constraint. c. where the marginal utility per dollar spent is the same for both X and Y. d. All of the above are correct.