Suppose the current level of output is 5000 and the elasticity of output with respect to labor is 0.7. A 10% increase in labor would increase the current level of output to
A) 5035.
B) 5070.
C) 5350.
D) 5700.
C
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If the consumption function is C = 25 + 0.9y and income increases by $100, then savings will increase by
A) $10. B) $25. C) $90. D) $115.
Compared to English and colonial vessels, Dutch flyboats:
a. were lighter. b. required smaller crew. c. carried fewer armaments. d. cheaper to build and operate. e. All of the above.
A cooperative, or "co-op" for short, is a single-owner firm
a. True b. False
In a past fare war, U.S. Air reduced the price of its Charlotte, North Carolina, to New York City round-trip fare from $198 to $138 to match American Airlines. U.S. Air did so reluctantly, saying it would cost the company millions of dollars in revenue
American, on the other hand, believed the fare cut would increase its revenue. What different assumptions about the underlying price elasticity of demand did each airline believe true?