When the price of beer goes up, our model of tastes would typically require tastes to change.
Answer the following statement true (T) or false (F)
False
Rationale: Prices change budgets -- not tastes. Beer still tastes the same.
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You are studying with a friend and your friend says, "Private goods are excludable and nonrival, while public goods are nonexcludable and rival." Do you agree?
What will be an ideal response?
Mutual interdependence means that
A) all firms are price takers. B) each firm sets its own price based on its anticipated reaction by its competitors. C) all firms collaborate to establish one price. D) all firms are free to enter or leave the market.
Economies of scale throughout the range of market demand give natural monopolies
a. downward-sloping long-run average cost curves b. upward-sloping long-run average total cost curves c. upward-sloping long-run average cost curves d. upward-sloping short-run average total cost curves e. horizontal long-run average cost curves
A firm is most likely to experience economies of scale if its start-up costs are high and its marginal cost is ________.
A. low B. decreasing C. increasing D. high