The price elasticity of demand for Rosie's Roses fresh flowers the week of Valentine's Day is 1.40 and is 2.25 other days of the year. If Rosie's Roses faces a constant marginal cost of $2 per rose, what is the profit-maximizing peak-load price to charge the week of Valentine's Day?
A) $7.00 B) $9.50 C) $3.60 D) $5.60
A) $7.00
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The slope of a typical isoquant is negative because to produce a given output, a producer
A) can use less of one input only if the productivity of that input increases B) will use more of one input only if the price of that input falls. C) will use more of one input only if it uses more of another. D) can use less of one input only if it uses more of another.
The intent of the liberum veto was ___________, and the outcome was _____________.
A. complete consensus; often chaos and corruption B. majority rule; complete consensus C. efficiency; inefficiency D. efficiency; efficiency
We calculate the amount of physical capital in an economy by adding up the value of all:
A. tools, equipment, and structures. B. skills and expertise of all employed people. C. skills and expertise of the working age population. D. technological capabilities used in production.
What are the unintended consequences of raising minimum wage? Explain why these consequences would happen.
What will be an ideal response?