The demand for a subway ride is probably ___________________ than is the demand for a car because ___________________.
A. less price elastic; a subway ride requires a smaller portion of one's income
B. more price elastic; a subway ride requires a smaller portion of one's income
C. less price elastic; people will take a longer time to adjust to the change in the price of a subway ride
D. more price elastic; people will take a longer time to adjust to the change in the price of a subway ride.
A. less price elastic; a subway ride requires a smaller portion of one's income
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Consider a general cost function C(q), with Average Cost=C(q)/q. Prove using calculus that the quantity which minimizes the Average Cost function is also at the point where the Marginal Cost equals the Average Cost
To do this, first derive the necessary condition for the AC to be at a minimum.
What impact do private insurance companies and Medicare have on national medical costs?
A) Medical costs go up because insurance leads to an increase in the quantity demanded of medical services. B) Medical costs go up because insurance will lead to the reduction in the supply of medical services due to the amount of paperwork required. C) Medical cost are unaffected by insurance companies. D) Medical costs go down because the insurance company pays the bill.
In an ideal organization, when do agents always make decisions in the best interests of their principle?
a. The decision makers have the information necessary to make the decision b. The decision makers have the incentive to make the right decision c. All of the above d. None of the above
Exhibit 12-2 Unemployment categories Category# ofIndividuals Frictional unemployment 20 Structural unemployment 35 Cyclical unemployment 60 Discouraged workers 5 Underemployed workers 10 Fully employed workers410 Population900 Using the information in Exhibit 12-2, the number of individuals included in the natural rate of unemployment is
A. 20. B. 35. C. 55. D. 60.