Assume that automobiles are a normal good. An increase in income will
A. shift the marginal revenue product curve of auto workers to the left.
B. move a firm down the marginal revenue product curve of auto workers.
C. have no effect on the marginal revenue product curve of auto workers.
D. shift the marginal revenue product curve of auto workers to the right.
Answer: D
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In the above figure, what would be the profit or loss at the profit-maximizing output for this natural monopolist?
A) -$300 B) $2,700 C) $2,100 D) -$1,200
When considering choice architecture, a nudge:
A. allows participants to choose among only choices that are good for them. B. can sometimes accomplish public policy goals in a less expensive way than traditional methods. C. presents choices that are similar to participants' ideal choices, but are slightly better than them. D. is a deliberate push by choice architect to get all people to behave a certain way.
Which of the following is not a characteristic of pure competition?
A. Price strategies by firms. B. A standardized product. C. No barriers to entry. D. A larger number of sellers.
If a decrease in the price of good X results in a decrease in the quantity of Y demanded,
A. good X and good Y are substitutes. B. good X and good Y are complements. C. the cross-price elasticity of demand for good Y is negative. D. There is not sufficient information to determine the relationship between good X and good Y.