Unless goods are Giffen goods, own-price elasticities of demand are always negative.
Answer the following statement true (T) or false (F)
True
Rationale: The sign of the own-price elasticity is negative when demand curves slope down and positive when they slope up. Demand curves slope up only for Giffen goods.
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Refer to Scenario 1. What is the total output when 2 hours of labor are employed?
A) 80 B) 100 C) 180 D) 200
Assume that one firm in a perfectly competitive market adopts a technological innovation that enables it to produce at a lower cost per unit than competing firms in the short run. Which of the following statements is correct?
a. The innovating firm will earn above-normal profit in the long run. b. All the competing firms will be forced to exit the market in the long run. c. This is an example of a decreasing cost industry. d. Competing firms will need to adopt the new technology in the long run in order to survive. e. Only new firms entering the industry with new-technology plants will be able to compete with the innovating firm.
A company that can build a project that will cost $50,000, but returns $52,000 in one year would make a good decision by turning this project down if the interest rate were 3 percent
a. True b. False Indicate whether the statement is true or false
Carol is very hungry. She has just sat down to eat. Her first bite gives her a certain level of utility. Her second bite increases her utility by more than the first bite. Her third bite increases her utility by more than the second bite. Carol has 40 bites left before she finishes. Which of the following statements is TRUE about Carol?
A. Carol will eventually experience diminishing marginal utility by the time she finishes eating, if her marginal utility begins to decline. B. Carol's total utility decreases with each bite. C. Carol's marginal utility will be negative when she takes her last bite. D. Carol is being inconsistent with the law of diminishing marginal utility.