Coffee and cream:
A) are both luxury goods.
B) are complements.
C) are both more inelastic in demand in the long run than in the short run.
D) have a positive cross price elasticity of demand.
B
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Regulated natural monopolies can obey a marginal cost pricing rule and still make a normal profit by engaging in
A) least cost pricing and average cost pricing. B) price discrimination and two-part tariff pricing. C) zero profit pricing. D) profit-maximizing pricing. E) None of the above answers is correct because a natural monopoly regulated using a marginal cost pricing rule always incurs an economic loss.
In the figure above, Nike's economic profit is ________
A) $3,000 B) $1,800 C) $9,000 D) zero
Gross national product is equal to:
a. gross domestic product b. net national product plus depreciation. c. national income plus net personal income. d. none of the above
Pollution rights can generate considerable cost savings over the traditional regulatory system of fixed discharge standards that do not allow the market process to allocate emissions reductions efficiently
Indicate whether the statement is true or false