Explain why baseball ticket prices may increase when a team pays a new player a large salary, but will remain unchanged when a current player gets a salary increase
What will be an ideal response?
The salary increase of a current player increases total but not marginal cost. The ticket price will remain unchanged. A new player may shift out the demand curve for tickets and result in higher ticket prices.
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The Lost Decade began in 1990 when Colombia announced that it lacked the international reserves it needed to pay the interest and principle due on its foreign debt
Indicate whether the statement is true or false
The equation: quantity of output supplied = natural rate of output + a(actual price level - expected price level), where a is a positive number, represents
a. an upward-sloping short-run aggregate supply curve b. a vertical short-run aggregate supply curve c. a downward-sloping aggregate demand curve d. None of the above is correct.
Which of the following is least likely to affect the net gain to migration?
A. an increase in migration costs B. changing one's preferences for living in different places C. an improvement in economic opportunities in the source state D. an improvement in economic opportunities in the destination state E. a general increase in the national price level
Under a policy of average-cost pricing, a monopolist must charge the price at which its ________ cost curve intersects its ________ curve.
A. marginal; demand B. average variable; demand C. marginal; marginal revenue D. average; demand