A change in input prices will change the location of the budget line
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
All of the following are considered to be problems associated with the use of concentration ratios to measure market power except:
A) the market definitions used in their construction may be arbitrary. B) two different markets with the same concentration ratio may have very different distributions of market share among firms used to calculate the concentration ratio. C) consideration of exports and imports generally causes concentration ratios to be overstated. D) concentration ratios are often based on national statistics and may not reflect substantial concentration in a market at a more localized level.
Data on miles of main line track in operation between 1860 and 1910 show that:
a. total mileage first increased and then decreased, causing the growth rate to eventually become negative. b. total mileage and the growth rate both increased steadily. c. total mileage increased steadily, but the growth rate tapered off. d. total mileage increased at a constant pace, resulting in a nearly constant growth rate.
The federal government's role in providing aid to the poor and the aged is justified because of concerns about
A. Market power. B. Macro failure. C. Inequity. D. Restricted supply.
What is the most likely result when the price of a good with elastic demand is raised by 10 percent?
(A) The quantity sold will decrease by 15 percent. (B) The quantity sold will increase by 10 percent. (C) The quantity sold will decrease by 10 percent. (D) The quantity sold will decrease by 5 percent.