Refer to the graph shown. If this perfectly competitive firm is producing 120 units of output, the market price is equal to:
A. 2.50.
B. $0.40.
C. $48.
D. impossible to determine with the information given.
Answer: B
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Falling oil prices meant that consumers in Libya could afford fewer imported goods. The Libyan government imposed controls to limit imports of cigarettes. At one point, the market price of a carton of cigarettes rose to $70. Which graph in Figure 4-22 best depicts this situation?
A. 1 B. 2 C. 3 D. 4
Suppose a movie theater raises its ticket prices by 10% and the total revenue it receives in ticket sales doesn't change one bit from the previous week
What can you say about the price elasticity of demand at that new price? Could this go on indefinitely? In other words, would continued price increases leave total revenue unchanged without bound? Why or why not?
A country has a trade deficit when
A) imports exceed exports. B) imports equal exports. C) exports exceed imports. D) exports are zero.
Why is value created when someone buys something for themselves?
A. Because the cost to produce the good is greater than the price of the good. B. Because the price of the good is greater than the value of the good to the buyer. C. Because the buyer values the good more than it costs the seller to produce. D. Because the buyer values the good as much as it costs the seller to produce.