Indifference curve analysis:
A. presumes, as does utility analysis, that satisfaction is numerically measurable.
B. presumes, unlike utility analysis, that satisfaction is numerically measurable.
C. presumes only that the consumer can say one combination of two goods yields more or
less utility than some other combination.
D. is in conflict with the idea of a downsloping demand curve.
Answer: C
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If the demand for cream cheese produced by a dairy is perfectly elastic, then:
a. the demand curve will be vertical. b. the demand curve will be horizontal. c. the demand curve will be upward sloping. d. the demand curve will be downward sloping. e. the demand curve will initially slope upward and then slope upward.
Mandated on-the-job training is seen in the United States mainly as a(n)
a. useful spur to economic growth. b. proper use of legislative power. c. unwarranted governmental interference. d. necessary requirement for increased productivity.
As the number of firms in the oligopoly grows very large, the
a. output effect disappears. b. price effect disappears. c. output effect equals the price effect. d. price of the product greatly exceeds marginal cost.
At an output of 10, ATC is $9 and price is $9. At an output of 11, ATC is $9 and price is $9. MC = MR at an output of 10.5. At that output the firm will
A. take a loss. B. break-even. C. make a profit.