Lemonade, a good with many close substitutes, should have an own price elasticity that is:
A. relatively inelastic.
B. perfectly inelastic.
C. unitary.
D. relatively elastic.
Answer: D
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Sweet Husks is a perfectly competitive corn farm. Currently, the expected price of an ear of corn is $0.20 and, at its current production level, Sweet Husks has a marginal cost of $.20 per ear. Which of the following is true regarding Sweet Husks?
A) To maximize expected profit, Sweet Husks should increase production. B) To maximize expected profit, Sweet Husks should decrease production. C) To maximize expected profit, Sweet Husks should double production. D) Sweet Husks is maximizing expected profit.
A newly issued bond with a face value of $12,000 and no coupon payments is priced at $9,000 . The bond will mature in one year. What is the yield on this bond?
a. 33.3 percent b. 25 percent c. $3,000 d. $1,909.09 e. It depends on the interest rate
All of the following increase the expected rate of return on R&D expenditures except:
A. patents. B. trademarks. C. imitation by others. D. trade secrets.
In the above figure, the optimal level of pollution cleanup is
A. Q1. B. Q2. C. Q3. D. Q4.