The diagram shows two product supply curves. It indicates that:
A. over range Q 1 Q 2 price elasticity of supply is greater for S 1 than for S 2 .
B. over range Q 1 Q 2 price elasticity of supply is greater for S 2 than for S 1 .
C. over range Q 1 Q 2 price elasticity of supply is the same for the two curves.
D. not enough information is given to compare price elasticities.
A. over range Q 1 Q 2 price elasticity of supply is greater for S 1 than for S 2 .
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Economic growth may face environmental limits because:
A. economic growth may lead to less, not more, pollution. B. global environmental problems are not handled by markets or national governments. C. economic growth can take the form of new, different, and "cleaner" goods and services. D. the market mechanism mobilizes resources to deal with shortages.
All of the following statements are consistent with the kinked demand curve theory except
A. the theory depicts cutthroat competition. B. according to the theory, firms are reluctant to raise or lower price. C. according to the theory, if a firm raised its prices its competitors also would raise their prices. D. the theory is associated with "sticky prices."
Microsoft Word is the most widely used word-processing program. Which of the following explanations for its popularity uses the lock-in hypothesis?
A. Build a better mousetrap and the world beats a path to your door. MS Word is the better mousetrap. B. MS Word is priced below other competing programs; Microsoft can afford to price it low because it sells so many copies. C. Although MS Word is not the cheapest word processor, its ratio of features to price is better than the competitors. D. Because MS Word is the standard in business, it is difficult to use other word processing programs and share documents.
Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $13, Marko's will produce
A) 1 shirt. B) 2 shirts. C) 3 shirts. D) 4 shirts.