Because the demand for wheat tends to be inelastic, the development of a new, more productive hybrid wheat would tend to
a. increase the total revenue of wheat farmers.
b. decrease the total revenue of wheat farmers.
c. decrease the demand for wheat.
d. decrease the supply of wheat.
Ans: b. decrease the total revenue of wheat farmers.
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In the short run,
a. at least one of the firm's inputs is fixed b. customer tastes and preferences are fixed c. the firm may vary all inputs d. sunk costs are variable e. government intervention is inevitable
When a monopolist sells the same product at different prices and the prices are NOT related to cost differences, we have
A) monopoly pricing. B) marginal cost pricing. C) price discrimination. D) price differentiation.
We measure the marginal ________ of a good by what a ________ for another unit of the good
A) benefit; person must pay B) cost; person is willing to pay C) benefit; person is willing to pay D) cost; person's preferences are
Full employment occurs when the rate of unemployment consists of:
a. structural plus frictional unemployment. b. cyclical plus frictional unemployment. c. structural, frictional, and cyclical unemployment. d. none of these.