What do you have to know to calculate the price elasticity of demand?
a. how much of the good was purchased at each of two different prices
b. the price elasticity of supply
c. how many firms supply the good
d. the portion of income the typical consumer spends on the good
Answer: a. how much of the good was purchased at each of two different prices
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A firm is said to have excess capacity when it produces the amount of output
A) such that price is greater than marginal cost. B) such that marginal revenue is greater than marginal cost. C) smaller than that which minimizes average total cost. D) larger than that which minimizes average total cost.
Publishers practice price discrimination when they sell books at high prices to
A) early adopters. B) online book sellers. C) large chain bookstores. D) local bookstores.
Suppose a little girl likes peanut butter and jelly sandwiches with exactly 2T of jelly and 1T of peanut butter. Suppose further that her mom agrees to make sandwiches to those exact specifications and the price of peanut butter is $.25/T and the price of jelly is $.10/T. If she has $1.80 to spend on peanut butter and jelly ingredients (ignore the bread) in a week, how many sandwiches will she
make? a. 1 b. 2 c. 4 d. 8
According to John Rawls, a "veil of ignorance" was needed for equitable decisions about appropriate social rules and individual endowments, so no one would know their place in society
Indicate whether the statement is true or false