Suppose that in a month the price of milk increases from $2 to $3 a gallon. At the same time, the quantity of gallons of milk demanded decreases from 200 to 190. The price elasticity of demand for milk (calculated using the initial value formula) is:
A. 0.1.
B. 0.2.
C. 1.
D. 10.
Answer: A
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In a simultaneous game where both players prefer doing the opposite of what the opponent does, a Nash equilibrium does not exist
Indicate whether the statement is true or false
The average product of labor is defined as:
A. the additional output produced by the last ?L units of labor hired. B. the amount of output divided by the amount of capital used to produce the output. C. the amount of output produced multiplied by the last ?L units of labor hired. D. the amount of output divided by the number of workers employed.
In every economy people vie for the economy's rationing device, a process called
A) competition. B) entrepreneurship. C) marginal benefit. D) positive economics.
A seller's supply curve shows the seller's:
A. hourly wage for producing an additional unit of output at each quantity. B. opportunity cost of producing an additional unit of output at each quantity. C. profit from producing an additional unit of output at each quantity. D. willingness to pay for an additional unit of output at each quantity.