If the demand curve for comic books is expressed as Q = 10,000 * p-1, then demand has a unitary elasticity
A) only when p = 10,000.
B) only when p = 100.
C) always.
D) never.
C
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Refer to Figure 6-10. A perfectly inelastic supply curve is shown in
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
Refer to Figure g. Lily's benefit function (dashed) is more concave than Millie's (dotted) in Figure g. Millie:
A. is more risk averse than Lily.
B. is less risk averse than Lily.
C. has a larger risk premium than Lily.
D. has a lower certainty equivalent than Lily.
Motorcycle helmet laws have been controversial in some states. Riders prefer the feel of the wind on their faces. Others, however, point out that riders without helmets are more likely to suffer severe injury and run up hospital bills at public expense. Which of the following would most likely reduce the incidence of high bills for helmetless riders?
a. raise insurance rates for helmetless riders b. lower insurance rates for helmetless riders c. publish information on injury rates for helmetless riders d. subsidize hospitals
If a profit-maximizing firm shuts down in the short run, it must be true that before the shutdown, at all positive output levels,
a. average total cost was less than average variable cost b. fixed cost was greater than total revenue c. variable cost was greater than total revenue d. profit was zero e. total cost plus total revenue was less than profit