Refer to the figure above. What is the price elasticity of supply between points A and B above?
A. 2
B. 1
C. -1
D. 1/3
Answer: B
You might also like to view...
Health care costs rose more than 10 percent in 2011, according to a survey of insurers by Aon Consulting Worldwide. If the increase in costs solely comes from increased prices for MRI and X-ray machines, then for the health care industry
A) fixed costs are increasing. B) long run average total cost is decreasing. C) productivity is increasing. D) variable costs are increasing.
Suppose Chip's Chips produces bags of potato chips that sell for $3 a bag. If they sold 12,000 bags and incurred total costs of $30,000, what was the company's profit?
A. $6,000 B. $42,000 C. $36,000 D. $18,000
A firm might offer efficiency wages in order to attract a better pool of applicants
a. True b. False Indicate whether the statement is true or false
Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth driver. If he hires a fourth driver, he can schedule breaks and lunch hours so that all three vans are in constant use, allowing him to increase deliveries per day from 60 to 75. It will cost an additional $75 per day to hire the fourth driver. The marginal cost per delivery of increasing output beyond 60 deliveries per day:
A. is $75. B. cannot be calculated without knowing Owen's total fixed costs. C. is $0 since Owen does not have to purchase another van. D. is $5.