Linesha, a college student working part-time received a wage increase. An avid movie buff, she increased her purchases of Blu-ray discs and reduced her purchases of DVDs. Based on this information
A) DVDs and Blu-ray discs are substitutes.
B) the cross-price elasticity between DVDs and Blu-ray discs is negative.
C) DVDs and Blu-ray discs are normal goods.
D) Blu-ray discs are normal goods and DVDs are inferior goods.
D
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Balin's Burger Barn operates in a perfectly competitive market. Balin's is currently earning economic profits of $20,000 per year. Based on this information, we can conclude that
A) Balin's is operating in the short run, but not the long run. B) Balin's is operating in the long run. C) Balin's profits will discourage new firms from entering. D) Balin's will increase its market price over the counting months.
What is the opportunity cost of 1 ton of oranges for the nations of Argentina and Brazil, respectively?
A. .25 ton of apples and .5 ton of apples
B. 10 tons of apples and 4 tons of apples
C. .5 ton of apples and .25 ton of apples
D. 4 tons of apples and 2 tons of apples
If an individual perfectly competitive firm charges a price above the industry equilibrium price, it will
A) sell all that it can produce and gain equal revenue with competitors. B) sell all that it can produce and gain more revenue than competitors. C) sell part of what it can produce and gain less revenue than competitors will. D) not sell any of what it produces.
A business organization owned and operated by a group of individuals for their mutual benefit:
a. cooperative b. corporation c. trade association d. limited partnership e. sole proprietorship