A household ________ as long as the utility from the good's consumption is less than its market price.
A. will only buy a good
B. should never sell a good
C. will always buy a good
D. should never buy a good
Answer: D
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If total fixed cost increases, which of the following will NOT change?
A) total cost B) average fixed cost C) marginal cost D) average total cost E) ALL costs increase when total fixed cost increases.
The local barber in a small town has decided to raise the price of his haircuts by 25% because he realizes he is the only barber in town and of course "everyone has to get a haircut"
His rational is that the demand for his services is price inelastic? What mistake is he making?
Refer to Figure 12-6. If Jason maximizes his profit he will produce the output rate indicated by point ________ and his average profit will equal ________
A) a; $3 B) b; $3 minus ATC at point b C) d; $3 minus ATC at point d D) e; $3 minus ATC at point e
Why might a union find that attaining the goal of employing all its members and the goal of maximizing total union wage receipts to be incompatible objectives?
What will be an ideal response?