Use the concept of location rent to explain what will happen to property values in your neighborhood if a landfill opens two blocks down the street
Property values will fall. This is an example of a location rent that is negative because you are close to
something undesirable.
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A decrease in the demand for eggs due to changes in consumer tastes, accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu, will result in
A) a decrease in the equilibrium price of eggs and no change in the equilibrium quantity. B) a decrease in the equilibrium price of eggs; the equilibrium quantity may increase or decrease. C) a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease. D) a decrease in the equilibrium quantity of eggs and no change in the equilibrium price.
For a given supply curve, how does the elasticity of demand affect the burden of a tax imposed on a product?
A) The excess burden of the tax will be greater when the demand is more elastic than when it is less elastic. B) The excess burden of the tax will be greater when the demand is less elastic than when it is more elastic. C) The excess burden of the tax will be minimized when the demand is unit elastic. D) The excess burden of the tax will be greater when the elasticity of supply is greater than the elasticity of demand.
Refer to Figure 8.4. If six microwave ovens are produced, Micro Oven's average total costs are A) $33.33. B) $83.33. C) $116.67. D) $200.00.
Which statement is true?
A. The monopolistic competitor is often a large firm. B. Most firms in the U.S. are not monopolistic competitors. C. Price discrimination is impossible under monopolistic competition. D. None of these statements are true.