If firms in a competitive market are identical, then the long-run market supply curve will be
A) horizontal.
B) upward sloping.
C) downward sloping.
D) undetermined.
A
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Elasticity of demand is calculated using percentage changes in both price and quantity.
Answer the following statement true (T) or false (F)
If demand is perfectly elastic, the absolute value of the price elasticity coefficient is
A) one. B) infinity. C) zero. D) equal to the absolute value of the slope of the demand curve.
Although digital storage costs have declined sharply in the past few years, many universities and companies still have limited storage space for email messages and impose a fixed limit on the amount of file storage space per user
May we view this as a common property resource problem, and do the fixed limits resolve the problem? A) Yes, the storage space used by one person is not available to another person, and the storage limit is a type of quota that allocates the property rights to the storage space. B) Yes, the storage space used by one person is not available to another person, and the storage limit represents a form of single-person ownership that resolves the common property resource problem. C) No, one person's use of the storage space does not have an impact on other people, so this is not a common property resource problem. D) This is an example of a common property resource problem, but the fixed limits on storage space do not resolve the problem.
Forms of free riding behavior
a. Always leads to underproduction b. Occur in both external cost and public goods cases c. Does not occur with common property resources, unlike public goods cases d. Occurs with private goods, public goods and common property resources