The nation's largest cable TV company tested the effect of a price reduction for premium movie channels. It increased prices from $20 to $30 per month and found virtually no change in the number of customers. This means:
a. the demand curve for the premium movie channels shifted to the right
b. the supply curve for premium movie channels shifted to the left.
c. the demand for premium movie channels is very elastic in this price range.
d. the demand for premium movie channels is very inelastic in this price range.
d
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Only a market economy must answer the questions of what goods to produce, how to produce them, and for whom to produce them.
Answer the following statement true (T) or false (F)
The services of real estate brokers are provided in a competitive market. If the state Board of Realtors enacts several requirements that limit the number of real estate brokers, then social welfare will most likely
A) not change but there will be a transfer from consumer to producer. B) not change but there will be a transfer from producer to consumer. C) decrease although producers are made better off. D) decrease although consumers are made better off.
The minimum efficient scale of a firm:
A. is the smallest level of output at which long-run average total cost is minimized. B. is in the middle of the range of constant returns to scale. C. occurs where marginal product becomes zero. D. is realized somewhere in the range of diseconomies of scale.
_____________is the extra output or change in the total product caused by the addition of one more unit of variable output.
Fill in the blank(s) with the appropriate word(s).