The substitution effect from a rise in the price of pizza
A) leads to a movement along the fixed budget line, due to a change in relative prices.
B) increases the quantity demanded of pizza.
C) decreases the quantity demanded of pizza.
D) Both answers A and B are correct.
C
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If your cell phone bill is $40 when you use up to 300 minutes per month or $80 when you use between 300 and 400 minutes per month, the marginal cost of the 301st minute is:
A. $40. B. $80. C. $0.27. D. $0.13.
Which firm would you expect to make the lowest profits, other things equal?
A. Bertrand oligopolist B. Sweezy oligopolist C. Stackelberg leader D. Cournot oligopolist
Suppose everyone in a town votes that they prefer improved public transportation systems instead of public parks. According to the criteria of independence of irrelevant alternatives that preference should ___________ even if a third option not likely to win, like a public zoo, is included in the vote.
A. stay the same B. change to the median C. change to the average D. change to the majority
In an increasing cost industry, the long-run supply curve is
a. positively sloped. b. negatively sloped. c. horizontal. d. vertical.