Comparing a market basket A to other market baskets, we can say that for a typical consumer, A is preferred to baskets to the
a. southwest but less preferred to baskets to the northeast.
b. northeast but less preferred to baskets to the southwest.
c. northwest but less preferred to baskets to the southeast.
d. southeast but less preferred to baskets to the northwest .
a. southwest but less preferred to baskets to the northeast.
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To deter a potential entrant, an existing firm in a market may threaten to sharply increase production so that the entrant will be left with a small share of the market. This may be a credible threat if:
A) production exhibits economies of scale. B) production exhibits diseconomies of scale. C) production costs may fall due to learning-by-doing. D) A and C are correct. E) B and C are correct.
Exhibit 11-12 A monopsonist
In Exhibit 11-12, a profit-maximizing firm faced with this labor market will hire ____ workers and pay a wage of ____.
A. 60; $35 B. 60; $25 C. 60; $27 D. 70; $30
Suppose computer prices at an office supply store fall from $1,000 to $900 and as a result the quantity demanded of typewriters decreases from 40 to 20 per month. The cross-price elasticity of demand is closest to
A. 6.3. B. 5.0. C. 0.16. D. 0.2.
Refer to the information above. Given this information, we know that effective labor (NA) grows at which rate?
A) 0 B) 1% C) 4% D) 5% E) 15%