Assume that the demand curve for sunblock is linear and downward sloping. Which of the following statements about the slope of the demand curve for sunblock and the price elasticity of demand for sunblock are true?
A) The slope is constant, but the price elasticity of demand is not constant at all points along the demand curve for sunblock.
B) The slope of the demand curve for sunblock is constant and equal to zero; demand is perfectly inelastic.
C) The slope is not constant, but the price elasticity of demand is constant at all points along the demand curve for sunblock.
D) The slope and the price elasticity of demand are constant at all points along the demand curve for sunblock.
A
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A) increase; left B) increase; right C) decrease; left D) decrease; right
A firm's marginal cost is defined as
a. the ratio of total cost to total output. b. the ratio of total output to total cost. c. the additional cost of producing one more unit of output. d. the reciprocal of total average cost.
Which of the following is NOT an example of a consumption expenditure?
A. a digital camera you purchase to take on vacation B. a new county jail C. a motorcycle you purchase to ride on the weekends D. a restaurant meal
Suppose there are 11 automakers. The top three have 20% of the market each, and the remaining eight divide remaining market share evenly. The HHI is
A. 909. B. 0. C. 10,000 D. 1,400.