Margarine and butter can both be used as a spread on toast. This means that they are:
a. independent goods.
b. complementary goods.
c. substitute goods.
d. Giffen goods.
e. inferior goods.
c
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Refer to the scenario above. If the best response of one bidder is to place a bid of $9,000, what is her maximum willingness to pay for the necklace?
A) $10,000 B) $9,000 C) $4,500 D) $18,000
If the market price is $3 and a perfectly competitive firm is producing 1,200 units and the marginal cost to produce the 1,200th unit is $4.53, which of the following is true?
A) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is positive. B) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is negative. C) The firm should increase production to maximize profit. D) The firm is maximizing profit.
The business structure that receives some of the benefits of corporations and of partnerships without some of the drawbacks of typical corporation creation is known as a
a. sole proprietorship b. general and limited partnership c. subchapter S corporation d. C corporation e. limited liability corporation or partnership
The monopolistic competition market structure is characterized by:
A. few firms and similar products. B. many firms and differentiated products. C. many firms and a homogeneous product. D. few firms and a homogeneous product.