In recent years, the prices of new domestically produced cars have been falling. Suppose consumers respond by reducing their demand for used cars and mass transport services such as bus travel
This information suggests that the cross-price elasticity between new cars and used cars, and the cross-price elasticity between new cars and bus travel, are negative.
Indicate whether the statement is true or false
FALSE
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All of the following statements regarding the marginal revenue product (MRP) curve and the demand for labor are true EXCEPT
A) an individual firm's demand for labor is its MRP curve. B) under conditions of perfect competition, MRP equals marginal physical product multiplied by the product's price. C) an increase in the market demand for a given product decreases the product's price. D) the demand for labor is a derived demand.
Firms that engage in price discrimination
a. will earn less profit than those that do not discriminate. b. will earn more profit than those that do not discriminate. c. are biased against certain buyers in the market. d. will always produce less output than firms that do not discriminate.
The individual firm in a purely competitive labor market faces:
A. a perfectly elastic labor supply curve and a downsloping labor demand curve. B. a perfectly elastic labor demand curve and an upsloping labor supply curve. C. labor demand and labor supply curves both of which are perfectly elastic. D. a downsloping labor demand curve and an upsloping labor supply curve.
Output Total Cost015125233340448558670
Refer to Table 5.5. The total variable cost of producing five units of output is:
A. $8.60. B. $43. C. $48. D. $58.