Given that chicken and beef are substitute goods, if the price of chicken decreases substantially, there would be:
A) an increase in the demand for beef.
B) a decrease in the demand for beef.
C) a decrease in the quantity of beef demanded.
D) no change in the demand for beef.
Ans: B) a decrease in the demand for beef.
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Points inside the production possibilities frontier represent
a. full and efficient use of all resources b. inefficiency or unemployment (or both) c. currently unattainable combinations of outputs d. currently unattainable combinations of resources e. the most desirable combinations of outputs
Wally’s Wallets has a near monopoly on wallets made of rare tree bark. Wally’s knows that people in urban technology centers pay more for these wallets than anyone else. Oftentimes, Wally’s Wallets are seen being offered to consumers at marked-up prices on third-party online shopping sites. Which factor necessary for price discrimination is Wally’s missing?
a. market segregation b. market power c. few available substitutes d. difficulty in reselling
Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit-maximizing output level, its total variable cost is:
A. $12,500. B. $14,300. C. $19,800. D. $27,000.
The individual with the highest valuation of the good will win in which of the following auctions?
A) English Auction B) Dutch Auction C) Sealed Bid Auction D) All of the above.