When the long-run average total cost curve is horizontal, a firm has economies of scale.
Answer the following statement true (T) or false (F)
False
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If the price of a soda increases from 75ยข to $1.00 and as a result the quantity demanded of sodas decreases from 10 to 9 per week, the elasticity of demand for sodas equals
A) 2.72. B) 0.37. C) 0.83. D) 1.20.
Different banks:
A. may offer loans at different rates. B. all offer loans at the same interest rate. C. are mandated to follow the Fed's set interest rate. D. never offer loans at exactly the same rates.
Proponents of the monetary growth rule believe that a constant growth rate in the money supply will lead to less uncertainty and greater credibility than with activist policies
a. True b. False Indicate whether the statement is true or false
A 3% increase in the price of tea causes a 6% increase in the quantity demanded of coffee. The cross-price elasticity of demand between coffee and tea is
A. -2.0. B. -0.5. C. 0.5. D. 2.0.