There are five hundred buyers in the market for cheese. If we know each individual's demand curves, to find the market demand, we must
A) multiply the price times quantity for each buyer and then add the resulting products together.
B) add the quantities that each buyer will purchase at every price.
C) add the prices that each buyer will pay at every quantity.
D) average the price each buyer is willing to pay for each given quantity.
E) give up because there is no way to find the market demand.
B
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A) printing menus is costly B) putting items "on sale" reduces firms' revenue C) frequent price changes may lead to losing customers D) all of the above E) none of the above
To correct for positive externalities the government
A) should allow the price system to do the correction. B) can impose a tax. C) can give a subsidy. D) should create a public good.
Which of the following would lead to an increase in the supply of Russian rubles?
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If a production process exhibits diminishing returns, then as output rises:
A. total revenue will eventually decrease. B. average total cost will eventually decrease. C. marginal cost will eventually increase. D. total fixed cost will eventually increase.