Computations of the price elasticity focus on the calculated magnitude due to of the law of demand.
Answer the following statement true (T) or false (F)
True
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If an industry is a constant-cost industry
a. prices of its inputs increase even though output remains constant b. it uses inputs at higher levels of output c. prices of its inputs rise at a constant rate as it uses more inputs d. prices of its inputs remain constant as the number of firms increases e. firms in the industry experience economies of scale
Which of the following is the most likely result of an increase in the minimum wage?
a. An increase in the employment of unskilled workers. b. A decrease in the number of workers seeking minimum wage jobs. c. An increase in the demand for unskilled workers. d. A decrease in the employment of unskilled workers.
In the "classical" region of the aggregate supply curve,
A. the economy is at the maximum output level, so only the composition of output can be changed, the quantity of output cannot be increased. B. the economy is on the production possibilities frontier. C. attempts to expand output will result in increases in both prices and output. D. the economy is at the maximum output level, so only the composition of output can be changed, the quantity of output cannot be increased AND the economy is on the production possibilities frontier.
Which of the following is NOT a measure of market structure?
A. Herfindahl-Hirschman index B. Entry conditions C. Four-firm concentration ratio D. Pricing behavior