Any method of producing a good or service is ________. It ________ the maximum profit that a firm can make
A) an information constraint; always increases
B) a technology; always increases
C) a technology; limits
D) an information constraint; limits
C
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Demand is defined as
A) a schedule of how much of an item people will purchase at any particular price of that item during a specified time period, other things being constant. B) a specific quantity of an item that people want at a particular price of that item during a specified time period, other things being constant. C) a schedule of how much of a good or service people will purchase at any particular price of a different item during the specified time period, other things being constant. D) a specific quantity of a good or service that people will purchase at one particular price of another item during a specified time period, other things being constant.
Suppose the price of a six-pack of cola rises from $3 to $3.75 and the price of a pack of mints rises from $1.25 to $1.75 . If the CPI rises from 140 to 182, then people likely will buy
a. more cola and more mints. b. more cola and fewer mints. c. less cola and more mints. d. less cola and fewer mints.
Suppose an industry receives protection from the government in the form of tariffs. A number of years later, it is observed that the quantity supplied by domestic firms had decreased and that the domestic price was substantially greater than the world
price. We could conclude that A) the tariff had been imposed to counteract dumping and had been successful. B) removal of the tariff would actually cause domestic output to increase and price to fall. C) the tariff had been imposed to protect an infant industry and that the industry still needed protection. D) removal of the tariff would cause domestic output to fall even further and the price to fall to consumers.
In Figure 5.7, assuming perfect competition, at MR1 there will be 
A. short-run pressure on the price to rise. B. long-run pressure on the price to rise. C. short and long-run pressure on the price to rise. D. no pressure on the price to change.