When there few close substitutes available for a good, demand tends to be
A) perfectly inelastic.
B) perfectly elastic.
C) relatively inelastic.
D) relatively elastic.
Answer: C
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A change in ________ causes a change in ________ and therefore a change in ________
A) cost; demand; price B) price; demand; supply C) supply; price; demand D) demand; price; cost
________ behavioral assumption about humans was that people usually act in a rational, self-interested way
A) Adam Smith's B) Janet Yellen's C) Karl Marx's D) Thomas Malthus's
In a duopoly, if advertising only takes customers from rivals than attracting new customers, then
A) neither firm will advertise B) there is no dominant strategy C) the result is similar to the prisoners' dilemma D) only one firm will advertise
Minimum efficient scale is defined as
A) the lowest output level at which long-run average costs are at their minimum. B) the amount of labor that maximizes the marginal product of labor. C) the point at which marginal cost, average variable cost, and average fixed cost are all equal. D) the point at which economies of scale are at their maximum.