Suppose the price of a bag of frozen chicken nuggets decreases from $6.50 to $5.75 and, as a result, the quantity of bags demanded increases from 600 to 800 . Using the midpoint method, the price elasticity of demand for frozen chicken nuggets in the given price range is
a. 0.35.
b. 0.43.
c. 2.33.
d. 2.89.
c
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In Table 1, pizzas are classified as a(n)
A) normal good. B) positive good. C) inferior goods. D) marginal good.
Economies of scale suggests that as the level of production:
a. decreases, the average cost of producing each individual unit increases. b. increases, the average cost of producing each individual unit increases. c. decreases, the average cost of producing each individual unit declines. d. increases, the average cost of producing each individual unit declines.
In the short run, monopolistically competitive firms will maximize profits by:
A. playing strategic games like oligopolists. B. acting like monopolists. C. acting like perfectly competitive firms. D. None of these statements is true.
Which statement is false?
A. International trade helps every country. B. The economics profession is nearly unanimous in advocating free trade. C. The jobs that are lost due to foreign imports can be gained by our export sector. D. Recent Presidents of the United States support free trade in word and deed.