Ceteris paribus means:
A) allowing all other things to change.
B) making value judgments.
C) all other things unchanged.
D) differentiating between macroeconomics and microeconomics.
Ans: C) all other things unchanged.
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The figure above shows the market for airline tickets. In early 2008 the price of jet fuel rose. This change is shown in the figure as a shift from
A) D0 to D1. B) D1 to D0. C) S0 to S1. D) S1 to S0.
When we solve the firm's cost minimization problem by the method of Lagrange multipliers, the optimal value of the Lagrange multiplier equals the:
A) marginal product of labor. B) marginal product of capital. C) marginal cost of production. D) cost-output elasticity.
Which is NOT an example of signaling high quality in a social setting
a. wearing a business suit on a job interview b. leaving a big tip for the waiter after a dinner date c. offering a cheap engagement ring to your bride d. Visiting the beauty salon before a big date
Graphically, how does a monopolistically competitive firm determine its profit-maximizing price?
A. The firm determines its profit-maximizing output and then charges the price associated with the point on its demand curve directly above that quantity. B. The firm's pricing structure is set by government regulators. C. It accepts the price set by the industry-wide forces of supply and demand. D. Graphically, it finds the place where MR = MC and charges the price directly to the left of that point.