If two goods are substitutes, then an increase in the price of one will cause:
A. a leftward shift of the demand curve for the other good.
B. a rightward shift of the demand curve for the other good.
C. a movement up and to the left along the demand curve for the other good.
D. a movement down and to the right along the demand curve for the other good.
B. a rightward shift of the demand curve for the other good.
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Refer to the table below. What is Crunchy Fruits total marginal cost to produce 15,000 units?
Crunchy Fruits makes dried fruit snacks. Crunchy Fruits has a multi-plant firm with two production facilities. The table above summarizes the marginal cost of production at the individual plants and the corresponding quantity produced at the individual plants.
A) $2.25
B) $4.50
C) $3.75
D) $3.25
One way of addressing the associated market failure that generates both private costs and external costs is for this activity to be
A) left alone. B) taxed. C) subsidized. D) banned.
The only rental house available at your favorite lake on July 4th is out of your price range. This is an example of:
A. a resource constraint. B. why you should have a yard sale. C. why everyone isn't already doing it. D. an infringement upon your freedoms enjoyed as a patriotic American.
Setting performance goals based on historical data and past performance creates:
A. a ratchet effect. B. a compensating differential. C. opportunism. D. the horizon problem.