The price elasticity of supply is higher when
A. producers have less time to adjust to price changes.
B. the product in question is a complementary good.
C. the number of producers in the market increases over time.
D. the number of buyers in the market increases.
Answer: C
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What does monopolistic competition have in common with monopoly?
A) a large number of firms B) a downward-sloping demand curve C) the ability to collude with respect to price D) mutual interdependence E) barriers to entry
When compared to a perfectly competitive market, a single-price monopoly with the same costs produces ________ output and charges ________ price
A) a larger; a lower B) a smaller; a lower C) the same; a higher D) a smaller; a higher E) a smaller; the same
At all the points above the midpoint on a linear demand curve, the value of price elasticity of demand is:
A) equal to one. B) zero. C) greater than one. D) less than one.
Opportunity costs exist for
a. households but not businesses or governments. b. businesses but not households or governments. c. businesses and households but not governments. d. households, businesses, and governments.