Assume that eggnog and cookies are complements. If the price of eggnog goes up, what happens to the demand for cookies?
a. demand for cookies increases
b. demand for cookies decreases
c. demand for cookies remains unchanged
d. the shift in demand will depend on the original price of cookies
B
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Given the information in Figure 14.4, the bilateral monopoly wage rate is:
A) W1. B) W2. C) W3. D) W4. E) Any of the above.
The consumer confidence index can be defined as:
a. an economic index that measures how consumers feel about their government. b. an economic index that measures how confident companies are about keeping their current consumers. c. an economic index that measures household expectations about the economy. d. an economic index that measures how investors feel about their investments in the stock market. e. an economic index used to measure consumers' confidence on a particular brand.
Under current antitrust laws, conglomerates are
a. illegal per se b. legal in the United States, but illegal internationally c. immune from prosecution d. legal only if they can show they are efficient e. illegal when necessities such as food are involved
Jerome, the florist, sold 500 bridesmaid's bouquets in June. He estimates his costs that month were ATC = $10, AVC = $6, and MC = $9 . If he sold each bouquet at the constant market price of $9, Jerome
a. made an economic profit of $500 b. made a loss of $500 c. made an economic profit of $1,500 d. made a loss of $1,500 e. should have shut down in June