Refer to the diagram, representing Slippery Slope Oil Company. A $10 increase in the user cost would shift:
A. up the extraction cost curve only, and reduce the amount of oil extracted in the present.
B. up both the extraction cost and total cost curves, and reduce the amount of oil extracted in
the present.
C. up the total cost curve only, and reduce the amount of oil extracted in the present.
D. down the total cost curve, and increase the amount of oil extracted in the future.
C. up the total cost curve only, and reduce the amount of oil extracted in the present.
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When the demand for a good is inelastic, that good is likely to have:
A. many close complements. B. few close substitutes. C. few close complements. D. many close substitutes.
Economists measure a market's domination by a small number of firms with a statistic called the
The consumption function assumes that _____
Fill in the blank(s) with the appropriate word(s).
Production is efficient when
A. the economy cannot produce more of one good without giving up the production of another good. B. technological change occurs. C. it generates a point beyond the production possibility curve. D. the maximum amounts of the most important good are produced.