The maximum price that a buyer would be willing to pay for a good or service is also called:
A. the reservation price.
B. the buyer-max price.
C. the reserved max price.
D. the opportunity cost.
A. the reservation price.
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In the long-run equilibrium for a perfectly competitive market
A) the firms' economic profits are zero. B) there is no incentive for entry or exit. C) average total costs of production are minimized. D) All of the above are correct.
Would the housing industry be characterized as an increasing, decreasing or a constant-cost industry? Explain your position
What will be an ideal response?
As a firm hires more labor in the short run, the
A) extra output of another worker may rise at first, but eventually must fall. B) costs of production are increasing at a fixed rate per unit of output. C) level of total product stays constant. D) output per worker rises.
Assuming elasticity of demand is reported as an absolute value, a price elasticity of demand of 0.4 indicates an:
A. elastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price. B. inelastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price. C. elastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price. D. inelastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.