Pork from pigs can be used to produce bacon or sausage, but not both. If the price of bacon falls for some reason, then, everything else equal:
a. the price of sausage will rise
b. the price of sausage will fall.
c. the resources used to raise pigs will become more expensive.
d. the demand for bacon will increase.
b
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At his current level of output, a monopolist has a MR of $10, a MC of $6, and an economic profit of zero. If the market demand curve is downward sloping and his marginal cost curve is upward sloping, the monopolist: a. is producing at the profit-maximizing level of output
b. could increase profit by increasing output. c. could increase profit by increasing his price. d. should exit the market if significant fixed costs have been incurred.
When people use anchoring and adjustment to estimate something, the adjustment they make when they receive new information is typically:
A. too large. B. in the wrong direction. C. highly accurate. D. too small.
The division of labor usually refers to splitting
a. the three coordination decisions among different sets of planners.
b. the parts of a complex task among different workers.
c. the production of consumption goods and capital goods among different workers.
d. political leaders into radical and conservative camps each year.
The relationship between environmental harm and national income per person for arsenic water pollution exhibits a(n)
A. inverted U-shaped curve. B. U-shape curve. C. downward sloping curve. D. upward sloping curve.