Refer to Figure 13-4. Should the firm represented in the diagram continue to stay in business despite its losses?
A) No, it is not able to cover its fixed cost.
B) Yes, it should increase its revenue by raising its price.
C) Yes, its total revenue covers its variable cost.
D) No, it should shut down.
C
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The Articles of Confederation and Perpetual Union (1781) adequately addressed the free-rider problems by setting up a tax system that required all states to share the costs of providing national defense, protecting private property rights, regulating
commerce with other countries and across states and upholding a system of laws. Indicate whether the statement is true or false
The demand for steak is _______________________ than is the demand for food because _____________________.
A. less price elastic; the scope of the market for steak is more broadly defined B. more price elastic; the scope of the market for steak is more broadly defined C. less price elastic; the scope of the market for steak is less broadly defined D. more price elastic; the scope of the market for steak is less broadly defined
The absolute price elasticity of demand for a product that has many good substitutes is probably
A) less than 1. B) greater than 1. C) equal to 1. D) infinity.
Conspicuous consumption
A. was a phrase coined by Karl Marx. B. was a phrase coined by Thorstein Veblen. C. was a phrase coined by Milton Friedman. D. was a phrase coined by Adam Smith.