The suggestion that a seller will try to set price based on "what the market will bear" is explicit recognition of the constraint imposed by:
A) the firm's marginal cost of production.
B) the price elasticity of demand for that item.
C) the firm's competitors.
D) the need for most firms to earn positive economic profits over time if they are to remain in business.
B
You might also like to view...
If the value of a government-taxation multiplier is 1.8, which of the following is likely to be true if all other variables remain unchanged?
A) A $1.80 increase in taxation increases gross domestic product by $1.80. B) A $1 reduction in taxation increases gross domestic product by $1.80. C) A $1 increase in taxation increases gross domestic product by $1.80. D) A $1.80 reduction in taxation increases gross domestic product by $1.80.
Bonds that are rated in the D category are of higher quality than bonds that are rated in the A category
Indicate whether the statement is true or false
Government expenditures are different from the government national income account (G) in that:
A. government expenditures includes transfer payments while G does not. B. government expenditures are net of tax revenue while G is not. C. G includes transfer payments while government expenditures does not. D. G includes spending for defense, highways, and education while government expenditures does not.
Isabel noted that whenever she wore her green contact lenses, the Chicago White Sox would win that evening. Based on this observation, she developed the "green-eyes-for-White-Sox" theory of winning. It is most likely true that Isabel
A. committed the fallacy of logic. B. committed the ceteris paribus error. C. showed good reasoning for the reason the White Sox would win. D. was confusing causality.