Suppose that the income elasticity of demand for college education is 1.3 . This indicates that
a. college education is a necessity
b. college education is an inferior good
c. the demand curve for college education slopes downward
d. college education is a normal good
e. the demand curve for college education is horizontal
D
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Exhibit 7-15 Long-run average cost
If the firm represented in Exhibit 7-15 is operating with a plant whose size corresponds to short-run average total cost curve A, the level of output that would minimize its short-run average total cost is:
A. 500 units per week. B. 1,000 units per week. C. 1,500 units per week. D. 2,000 units per week.
For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because
A. a normal rate of return must be paid to the owner. B. the industry will be a closed shop. C. the wage rate offered the newest employee must be paid to all workers. D. there is not good factor substitution in a monopsony.
Refer to the information provided in Table 8.4 below to answer the question(s) that follow. Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4 4?B2 6????2 units of outputA 7 6?B410????3 units of outputA 8 6?B 6 11Refer to Table 8.4. Assume that the relevant time period is the short run. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, this firm's total cost of producing one unit of output is
A. $50. B. $60. C. $110. D. indeterminate from this information.
An increase in the price of MP3 players will result in
A) a smaller quantity of MP3 players supplied. B) an increase in the supply of MP3 players. C) a decrease in the demand for MP3 players. D) a larger quantity of MP3 players supplied.