The demand curve for a product shifts below. Which of the following statement(s) is (are) a plausible explanation(s) for this situation?
A) The price of a competing product decreased.
B) A successful television advertising campaign was launched by the manufacturer of the product.
C) Assuming the commodity in question is a normal good, income available to the customer increased.
D) Both B and C
Answer: D
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Round Things, Inc.'s production process exhibits economies of scale. Currently its long-run average total cost is $1/unit. If Round Things doubles its use of all inputs, its new long-run average total cost will be
A. $1/unit. B. greater than $1/unit but less than $2/unit. C. greater than $2/unit. D. less than $1/unit.
In 2007, the government spent over $140 billion on transportation, with nearly ______ percent of this amount being spent on the highway system
a. 5 b. 10 c. 35 d. 80 e. 95
Related to the Economics in Practice on p. 429: If a Swiss dealer sells a newly made watch it is
A. not counted in either U.S. or Swiss GDP. B. counted in U.S. GDP. C. counted in Swiss GDP. D. counted in U.S. GDP and Swiss GDP.
A market that mainly stresses product differentiation is called
A) perfectly competitive. B) monopolistically competitive. C) a monopoly. D) an oligopoly.