Consumers must make choices about what to buy and what to forgo to fulfill wants because
a. consumers' income are unlimited.
b. consumers' wants are limited.
c. consumers' incomes are limited.
c. consumers' incomes are limited.
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In the long run, the greater burden of a specific tax will usually be absorbed by:
a. consumers. b. the party—consumers or producers—with the more elastic demand/supply curve. c. the party with the least elastic demand/supply curve. d. shareholders and employees of the firm in the form of reduced dividends and wages.
If a firm experiences decreases in the per-unit costs of production as its network increases, then this firm is experiencing
A) economies of scope. B) economies of scale. C) network externalities. D) differentiation.
Which of the following profit functions exhibits a Leontief production function?
A. ? = P × (3K + 4L) ? 20L ? 35K B. ? = P × (3K0.5 + 4L0.5)1/0.2 ? 20L ? 35K C. ? = P × min(2L, 5K) ? 20L ? 35K D. ? = P × K0.75L0.50 ? 20L ? 35K
Refer to the figure below, which shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1 to S2?
A. An increase in the price of fertilizer
B. A change in consumer tastes away from cornbread
C. A decrease in consumer incomes, assuming corn is a normal good
D. The development of a more effective insecticide against corn rootworm