Price elasticity of supply is always
A) positive because of the law of supply.
B) negative because of the law of supply.
C) positive because of diminishing marginal utility.
D) negative because percentages can only be negative.
Answer: A
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State at least two major benefits of promoting non-governmental organizations in developing countries as sources and conduits of foreign assistance
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Suppose when a monopolist produces 75 units its average revenue is $10 per unit, its marginal revenue is $5 per unit, its marginal cost is $6 per unit, and its average total cost is $5 per unit. What can we conclude about this monopolist?
a. The monopolist is currently maximizing profits, and its total profits are $375. b. The monopolist is currently maximizing profits, and its total profits are $300. c. The monopolist is not currently maximizing profits; it should produce more units and charge a lower price to maximize profits. d. The monopolist is not currently maximizing profits; it should produce fewer units and charge a higher price to maximize profits.
It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. Operators of hydroelectric generating plants on the river find they must clean up the river's water before it flows through their equipment. Refer to the above information. If nothing is done to correct this situation:
A. the price of electricity will be lower than it should be. B. there will be an overallocation of resources to the production of electricity. C. there will be an overallocation of resources to the production of paper goods. D. there will be an underallocation of resources to the production of paper goods.
Explain why having different marginal rates of substitution is necessary for trade to occur
What will be an ideal response?