We are given the individual demand curves for all of the people that consume Good Y. Which statement is TRUE about the market demand curve for Good Y?
A) The market demand curve is obtained by horizontally summing the individual demand curves.
B) The market demand curve is obtained by vertically summing the individual demand curves.
C) The market demand curve cannot be obtained because information on prices is missing.
D) The market demand curve cannot be obtained from individual demand curves.
A
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Diminishing marginal rate of substitution can be seen when indifference curves
A) cross. B) are convex. C) are downward sloping. D) become flatter as we move down and to the right.
A pizza parlor's rent is
A) sunk in the long run. B) fixed in the long run. C) avoidable in the short run. D) variable in the short run.
Which is NOT a characteristic of monopolistic competition?
A) small share of market to each firm B) lack of collusion among firms C) few firms in the industry D) independence of each firm's decisions
If the dollar appreciates relative to the yen
A. there is no reason to expect either appreciation or depreciation of the yen. B. the yen must depreciate relative to the dollar. C. the yen may also appreciated in value. D. the yen will appreciate only if U.S. exports to Japan exceed U.S. imports from Japan.