If supply falls, what happens to equilibrium price and quantity?
What will be an ideal response?
price rises; quantity falls
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Sometimes you will hear economists argue that the infant industry argument against free trade is a weak one because these industries never seem to "grow up." What is meant by this argument?
What will be an ideal response?
Many economists believe that a family bases its spending decisions on its permanent, or average, income rather than on transitory income
a. True b. False Indicate whether the statement is true or false
In Europe, in 2005, Microsoft was penalized for______.
a. unfair labor practices b. price discrimination c. false advertising d. bundling products
If a monopolist is practicing perfect price discrimination, then the following equation is true:
A) MC = 1/2 MR at the profit-maximizing level of output. B) MR = 1/2 P for any unit. C) MR = P for all units. D) P = AVC at the profit-maximizing level of output. E) AR = ATC at the profit-maximizing level of output.