If the MPC is 0.8, then the MPS is
A) 0.2.
B) 1.
C) 5.
D) 8.
Ans: A) 0.2.
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The demand and supply functions for sweatshirts (the basic grey kind) are as follows:
Demand Supply Quantity Quantity Demanded Supplied Price (per period) Price (per period) $10 15,000 $10 22,000 9 15,500 9 19,000 8 16,000 8 16,000 7 16,500 7 13,000 6 17,000 6 10,000 5 17,500 5 7,000 4 18,000 4 4,000 3 18,500 3 1,000 2 19,000 2 0 a. Graph the demand and supply functions for sweatshirts and find the equilibrium price and quantity. b. What effect will an increase in the price of gym shoes (a complement) have on the equilibrium price and quantity of sweatshirts, all else constant? Illustrate the effect using your graph. c. What effect will a wage increase for workers in the sweatshirt industry have on the equilibrium price and quantity of sweatshirts, all else constant? Illustrate the effect using your graph.
Price discrimination that tends to lessen competition is outlawed by the:
a. Sherman Antitrust Act. b. Clayton Act. c. Federal Trade Commission Act. d. Interstate Commerce Act.
Trade restrictions imposed in the name of national security have been recommended by protectionists in order to:
a. develop strong defense-related industries. b. avoid dependence on foreign suppliers during wartime. c. reduce the necessity of stockpiling strategic supplies. d. all of these.
The fact that invention is based largely on fixed costs and is a public good means that which of the following is not relevant to the process?
A. Average total cost B. Marginal cost C. External cost D. Average variable cost