Suppose that a technological advancement substantially reduces the cost of laser eye surgery. This would cause the equilibrium:
A. price of technology to increase.
B. quantity of technology to decrease.
C. quantity of laser eye surgery to increase.
D. quantity of laser eye surgery to decrease.
Answer: C
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A learning curve may be expressed as a relationship between the labor per unit (L) and the cumulative number of units produced (N)
Which of the following learning curves exhibits a faster reduction in cost of production due to learning, (1 ) L = 10 + N-1 or (2 ) L = 10 + N-0.5? A) Learning curve (1 ) B) Learning curve (2 ) C) Curves (1 ) and (2 ) exhibit the same rate. D) We cannot determine the rate of cost reduction without knowing the value of N.
A perfectly discriminating monopolist converts every dollar of producer surplus into economic profit
a. True b. False
If a consumer's purchases of a product increases as income increases, this good is classified as a(n):
a. superior good. b. inferior good. c. substitute good. d. complementary good. e. normal good.
Economics may be referred to as a(n) ________ science, meaning that data is looked at to see whether assertions are correct.
A. soft B. exact C. natural D. empirical