The figure below shows an individual's demand for items from a warehouse club. All of the people who shop at the warehouse club have the same demand. If the managers use two-part pricing, the membership fee (the access fee) is ________ and the price per item (the user fee) is ________ .
A) $80; $6 per unit
B) $60; $6 per unit
C) $40; $10 per unit
D) $20; $10 per unit
A) $80; $6 per unit
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An advance in technology that results in increased productivity results in a
A) rightward shift of the labor supply curve. B) rightward shift of the labor demand curve. C) rightward shift of both the labor supply and labor demand curves. D) no change to the production function.
Constant returns to scale means that as all inputs are increased
A) total output remains constant. B) average total cost rises. C) average total cost rises at the same rate as do the inputs. D) total output increases in the same proportion as do the inputs.
When bank loan officers screen loan applicants to eliminate potentially bad risks, they are attempting to mitigate the problem of
A) adverse selection. B) moral hazard. C) interest rate risk. D) illiquidity.
Frictional unemployment is often the result of changes in the demand for labor among different firms
a. True b. False Indicate whether the statement is true or false