The marginal propensity to consume (MPC) is the change in consumption divided by the change in income
a. True
b. False
Indicate whether the statement is true or false
True
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Pure monopoly markets are very common in the real world
a. True b. False Indicate whether the statement is true or false
Suppose the price of good X falls. As a result, the quantity demanded for good X increases for a particular consumer. For this consumer, the substitution effect induced the consumer to purchase more X while the income effect induced the consumer to purchase less X. We can infer that X is a(n)
a. normal good. b. inferior good. c. Giffen good. d. luxury good.
Which of the following is an example of menu costs?
a. deciding on new prices b. printing new price lists c. advertising new prices d. All of the above are examples of menu costs.
If the demand curve of a perfect competitor is tangent to (just touching) the firm's average total cost curve,
A. the firm is definitely in the short run. B. the firm is probably in the short run. C. the firm is definitely in the long run. D. the firm is probably in the long run.