Which of the following does not contribute to the failure of the law of one price?
A. Technical specifications
B. Transportation costs
C. Tariffs
D. Tastes are similar across countries
Answer: D
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Which of the following is true regarding income along a price-consumption curve?
A) Income is increasing. B) Income is decreasing. C) Income is constant. D) The level of income depends on the level of utility.
Refer to the graph shown. If a firm expected to produce 300 units when it built its plant but now desires to expand its output to 500 units in the short run, it will use the plant size represented by:
A. SATC1. B. SATC2. C. SATC3. D. SATC4.
Assume that the market clearing price for wireless earbuds is $10, but that the maximum price that can be charged is $9. This is an example of
A. a price control that will lead to a surplus of wireless earbuds on the market. B. a price ceiling that will likely lead to a shortage of wireless earbuds on the market. C. markets failing to ration a fixed quantity of wireless earbuds. D. a price floor that will lead to a shortage of wireless earbuds on the market.
In the above table, the efficient level of output is
A) 2,000 units. B) 3,000 units. C) 4,000 units. D) 5,000 units.