The concept of the margin deals with:
A) making incremental choices.
B) one more or one less of something.
C) doing a little more or a little less.
D) all of the above.
Ans: D) all of the above.
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Which of the following is an example of an activity that creates an external cost?
i. a smoker emitting second-hand smoke ii. sulfur emitting from a smoke stack iii. throwing garbage on the roadside A) i only B) i and ii C) iii only D) ii and iii E) i, ii, and iii
Consider the market for gasoline in a moderately large city. All else constant, it would be reasonable to conclude that the price elasticity demand for any individual gas station would be higher (more elastic) than the price elasticity of demand for
gas in general. Indicate whether the statement is true or false
The price elasticity of demand for a monopolist's product depends on
A) the number and similarity of substitutes. B) the ATC of the item it produces. C) the AVC of the item it produces. D) the MC of the item it produces.
The assumption that "other things are constant" is also known as the
A. distinguishing characteristic of economics as a science. B. ceteris paribus assumption. C. relationships assumption. D. rational self-interest assumption.