A video rental store rents old movies for $1.50 per day. On average, 300 movies are rented each day. The store receives several copies of a new smash movie just released in video and decides to rent these movies at $3.50 per day
Now, 400 movies are rented each day. Thus, though the average rental price of a movie increased, the quantity rented increased. Does this mean that the law of demand does not hold for this market?
The two types of movies (old and new release) represent two different markets. Thus, there is a demand for old movies and a demand for new releases. Both of these demand curves would be downward sloping, meaning that the law of demand applies.
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When there are diseconomies of scale in production:
a. long-run average total cost declines as output expands. b. long-run average total cost increases as output expands. c. average fixed cost increases as output expands d. marginal cost decreases as output expands.
Direct controls are generally much more costly than emissions taxes because
a. under direct controls emissions cutbacks are usually not apportioned among the firms on the basis of their ability to reduce pollution cheaply and efficiently. b. emissions tax per unit of output is higher than the per-unit direct control program cost. c. government cannot legally levy emissions taxes that are as high. d. firms disregard emissions taxes.
Refer to the scenario above. Julie should place a bid of ________
A) $300 B) $150 C) $200 D) $250
The value of goods produced by coalition A is worth $50, and by coalition B is worth $30 . If together they produce $100 of them, the game is called superadditive
Indicate whether the statement is true or false