Both income elasticity of demand and cross-price elasticity of demand coefficients can take on negative, zero, or positive values
a. True
b. False
A
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When there is a tendency for a particular product to fall out favor with additional consumers because other consumers have chosen not to purchase the product
A) negative market feedback occurs. B) positive market feedback occurs. C) the tit-for-tat strategy will begin. D) the network effect will increase.
A perfectly competitive firm will shut down in the short run when marginal revenue equals marginal cost at a price less than minimum average variable cost
a. True b. False Indicate whether the statement is true or false
If two firms pollute, and the increase in costs to Firm A from decreasing pollution is less than the decrease in costs to Firm B from increasing pollution:
A. the firms will not trade the right to pollute. B. the firms can benefit by trading the right to pollute. C. while both firms can benefit from trading, there is no way for them to determine an agreeable price. D. both firms will stop polluting.
The 2017 price level in Japan was relatively lower than the price level in the United States. Thus, a U.S. manufacturing facility looking to buy aluminum for its plant would most likely buy aluminum from Japan.
Answer the following statement true (T) or false (F)