When Cabbage Patch Dolls were introduced, they were extremely popular at Christmas, and most stores sold out. By the next year, there were plenty still available at Christmas. What happened?
We might conclude that the manufacturer expanded production capacity, but this would not be a totally satisfactory explanation. Between the two periods, competitors developed imitative products to successfully compete with the Cabbage Patch phenomenon. This is what we would expect in a competitive market with differentiated products. Any success in earning an economic profit will be met with imitators.
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The opportunity cost of going to a particular college is not the same for everyone
Indicate whether the statement is true or false
In the DMP model
A) the market wage is equal to the marginal product of labor. B) the market wage is equal to the marginal rate of substitution of leisure for consumption. C) the wage is equal to the marginal rate of transformation. D) the wage is determined by bargaining between the firm and the worker.
In the case of the production of electronic calculators, introduced in the United States in the 1960s,
a. a technological breakthrough reduced the input quantities needed to produce them. b. quantity demanded increased significantly as prices fell. c. production costs fell with advances in technology. d. All of the above are correct.
Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Ingrid decides to try to buy a ticket from a scalper (a person who purchased extra tickets at the box office with the intent to resell them at a higher price). If Ingrid finds someone who is willing to sell her a ticket for $70, she should:
A. purchase the ticket because doing so will make her $5 better off. B. purchase the ticket even though doing reduce total economic surplus. C. not purchase the ticket because it is overpriced. D. not purchase the ticket because the cost to the scalper was only $60.