In setting their prices, price searcher firms ignore
A) demand.
B) marginal cost.
C) the prices of competitors.
D) all of the above.
E) none of the above.
E
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Figure 5-14
Martha initially buys the combination of pens and pencils shown as A in Figure 5-14. After the prices of both goods change, she buys combination B. It must be true that
a.
Martha prefers A to B.
b.
Martha prefers B to A.
c.
Martha is indifferent between A and B.
d.
Martha's preferences between A and B cannot be determined from the information given.
The average annual growth rate of gross domestic product in the world as a whole during the quarter century following World War II was very close to
What will be an ideal response?
The short run is characterized by:
A. plenty of time for firms to either enter or leave the industry. B. increasing but not diminishing returns. C. fixed plant capacity. D. zero fixed costs.
When the balance of trade is in balance, we know with certainty that
A. the value of capital exports equals the value of capital imports. B. the value of exports of goods and services equals the value of imports of goods and services. C. the value of all debit transactions equals the value of all credit transactions. D. the value of exports of goods equals the value of imports of goods.