Any firm that operates in an imperfectly competitive market faces a downward-sloping demand curve for its product
Indicate whether the statement is true or false
TRUE
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According to the Law of Comparative Advantage,
A) production should be based on who can produce a product lowest opportunity cost. B) production should be based on who can produce more of a good. C) production should take into account strategic interests, such as national security. D) production should be for the people instead of for profit.
The relative price of a magazine in the above figure is
A) 0.5 of a hamburger per magazine. B) 1 hamburger per magazine. C) 1.33 hamburgers per magazine. D) 8 hamburgers per magazine.
A tax on sellers has what effect on a market?
A. Supply shifts vertically upward by the amount of the tax. B. Demand shifts vertically downward by the amount of the tax. C. Equilibrium price decreases and equilibrium quantity decreases. D. Equilibrium price decreases and equilibrium quantity increases.
What is the basic assumption underlying the model of choice?