The willingness to pay is the maximum amount that a buyer will pay for a good and measures how much the buyer values the good
a. True
b. False
Indicate whether the statement is true or false
True
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A set of actions that a firm takes to achieve a goal is the definition of a
A) business prospectus. B) business strategy. C) business goal. D) business plan.
Which of the following is true of the demand curve faced by a monopolistically competitive firm? a. The demand curve faced by a monopolistically competitive firm is kinked
b. The demand curve faced by a monopolistically competitive firm is downward-sloping. c. The demand curve faced by a monopolistically competitive firm is upward-sloping. d. The demand curve faced by a monopolistically competitive firm is horizontal.
The Interstate Commerce Commission (ICC) regulates railroads, barges and trucks. Suppose technical change lowers the costs of railroads. As a result, the ICC permits railroads to lower prices some but also alters the rates of barges and trucks so they
get additional business. The ICC would be acting consistently with A) the capture theory of regulation. B) the public interest theory of regulation. C) the share-the-gains, share-the-pains theory of regulation. D) None of the theories presented in the text since economic regulation is specific to a single industry and not to agencies that cover more than one industry. That is the province of social regulation.
The aggregate supply curve (short run) is upsloping because:
A. wages and other resource prices match changes in the price level. B. the price level is flexible upward but inflexible downward. C. per-unit production costs rise as the economy moves toward and beyond its full- employment real output. D. wages and other resource prices are flexible upward but inflexible downward.