Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves of two distinct groups of customers-residential and business
If the marginal cost of installing carpet is a constant $1 per sq yard, what price does Bob charge each segment?
Setting MR = 1 in both markets yields a price of $5.50 in the residential market and $8 in the business market.
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Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $12, the firm
A) incurs an economic loss, but will not shut down. B) will not shut down in the short run, but will leave the industry in the long run. C) will shut down. D) is breaking even.
The demand for labor increases (that is, the demand for labor curve shifts rightward) if the
A) wage rate increases. B) wage rate decreases. C) price of the firm's output rises. D) price of the firm's output falls.
A flat tax would increase the possibilities of abuses and misrepresentations that go with tax deductions
a. True b. False Indicate whether the statement is true or false
If the price elasticity of demand for insulin is equal to zero then the demand curve for insulin is
A) horizontal. B) downward sloping. C) curvilinear. D) vertical.