Suppose that the market price for hot dogs sold by street vendors has just risen from $4.50 to $5.00, and that in response Curly has now begun operating a hot dog cart. We can assume that Curly's reservation price for hot dogs is:
A. greater than $4.50 but no more than $5.00.
B. at least $5.00.
C. $4.50.
D. $5.00.
Answer: A
You might also like to view...
Nearly a quarter of China's 1.3 billion people are under the age of 15. How will this affect high school enrollment over the next fifteen years? The labor market over the next fifteen years?
What will be an ideal response?
What impact would a severe drought that destroys the wheat crop in several areas of the United States have on the market for wheat?
a. The supply of wheat would fall. b. The supply of wheat would rise. c. The demand for wheat would fall. d. The demand for wheat would rise.
_____ is when the total amount of taxes collected as a result of a tax reform is unchanged
a. Revenue enhancing tax reform b. Revenue neutral tax reform c. Comprehensive constant tax reform d. Comprehensive tax reform
Which of the following is true of the output level produced by a firm in long-run equilibrium in a monopolistically competitive industry?
A) It produces at minimum average cost. B) It does not produce at minimum average cost, and average cost is increasing. C) It does not produce at minimum average cost, and average cost is decreasing. D) Either B or C could be true.