Refer to the above figure. The figure represents the consumption function for a consumer. Point D represents
A. zero saving.
B. dissaving.
C. saving.
D. autonomous consumption.
Answer: C
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Morgan graduates from college and gets a job paying $50,000 a year. While in school, she consumed 4 pounds of chicken and 1 pound of shrimp a month. After she starts work, she consumes 2 pounds of chicken and 3 pounds of shrimp a month
If everything else is held constant, we know that A) chicken and shrimp are normal goods for Morgan. B) chicken is an inferior good and shrimp is a normal good for Morgan. C) chicken is an inferior good for Morgan. D) shrimp is a normal good for Morgan.
A rise in demand for restaurant meals is likely to cause which of the following in the short run?
a. economic losses for each restaurant b. a lower price for each restaurant meal c. fewer restaurants in the industry d. more restaurants in the industry e. economic profit for restaurants
Perfect competition is a market structure in which there is:
a. a contest among firms to provide good service after the sale. b. competition in product quality. c. rivalry in product design. d. none of these.
If you know that when a firm produces 10 units of output, total cost is $1,030 and average fixed cost is $10, then total variable cost is
A. $104. B. $930. C. $1,130. D. $1,040.