If the government pays a per-unit subsidy to the producer of a service, we would expect to see a(n) I. increase in the quantity demanded. II. decrease in the out-of-pocket price paid by consumers. III
increase in the quantity supplied by producers. A) I only
B) both I and II only
C) both II and III only
D) I, II, and III
D
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Knowledge capital is nonrival in the sense that
A) firms do not compete to be the first to develop new technologies. B) two people can use the same knowledge to develop and produce a product. C) no single company can be excluded from the benefits of new technologies. D) firms can benefit from the research and development of rival firms without paying for that benefit.
According to the law of diminishing marginal utility, the marginal utility curve is ____
a. vertical b. flat. c. upward sloping. d. downward sloping.
Exhibit 7-12 Marginal revenue and cost per unit curves
?
As shown in Exhibit 7-12, the firm will shut down in the short-run at a price below:
A. OA. B. OB. C. OC. D. OD.
If the percentage change in quantity supplied is 10%, and the percentage change in price is 10%, then the supply for the good is
A. elastic. B. unit elastic. C. inelastic. D. perfectly inelastic.