A sudden massive reduction in the availability of chocolate will likely cause the price of chocolate to ________, which will ________ the quantity of chocolate demanded by consumers
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
B
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Empiricism refers to the process of:
A) making choices using values and beliefs. B) measuring variables. C) testing ideas using data. D) collecting and organizing data.
Allegiant Air holds a natural monopoly on most of the routes it serves in the United States. Allegiant Air's marginal revenue will ________ when its total revenue ________
A) equal $0; is maximized B) be negative; is maximized C) be positive; is maximized D) inelastic; is increasing E) elastic; is increasing
Suppose the short-run production function is q = 10 ? L. If the wage rate is $10 per unit of labor, then MC equals
A) q. B) q/10. C) 10/q. D) 1.
Price discrimination by a firm is
A. illegal under all circumstances. B. legal if the firm can show that the difference in the prices charged customers is justified by a difference in the costs of serving them. C. legal if the firm can show that the demand for its good is relatively elastic. D. legal under all circumstances.