Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The firm is currently along isocost CD. If the price of capital is $10, then the price of labor is
A. $10.
B. $20.
C. $80.
D. indeterminate from this information.
Answer: A
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Tacos and pizza are substitutes. If a 2 percent change in the price of a taco leads to a 4 percent change in the demand for pizza, the cross elasticity of demand equals
A) -1/2. B) 1/2. C) 2. D) -2. E) 4.
Fluctuations in Tobin's q are ________, because ________
A) frequent and substantial; asset prices are volatile B) frequent and substantial; replacement costs are volatile C) infrequent and mild; replacement costs are relatively stable D) infrequent and mild; the marginal product of capital does not change quickly
If regulation imposes marginal cost pricing on a natural monopoly, then the monopoly will:
a. suffer persistent economic losses. b. earn a fair, but not excessive, return on its assets. c. produce too little output to achieve efficiency. d. experience diseconomies of scale.
An ______ is a graphical representation that shows the positive relationship between price and quantity provided.
a. individual supply curve b. individual demand curve c. individual equilibrium curve d. individual surplus curve