If there is an increase in the price of broccoli because of disastrous weather that destroys about half of this year's spinach crop, which of the following could be TRUE?
A) The cross elasticity of demand between spinach and broccoli is negative 1.25.
B) The demand curve for broccoli has shifted rightward and the cross elasticity of demand between spinach and broccoli is positive.
C) The demand curve for spinach has shifted to the leftward and the cross elasticity of demand between spinach and broccoli is positive.
D) The demand curves for spinach and broccoli have become more cross inelastic.
B
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Suppose you were interested in increasing technological progress in your country. Suggest some ways to do it
What will be an ideal response?
Describe the conditions under which monopoly exists. Give two examples
What will be an ideal response?
In the long run, firms in monopolistic competition have excess capacity
Indicate whether the statement is true or false
Exhibit 6-12 Cost schedule for producing pizza Pizzas FixedCost VariableCost TotalCost 0 $ $ $ 1 48 2 17 3 27 4 78 5 40 6 64 7 80 In Exhibit 6-12, the marginal cost of producing the 3rd pizza
A. is higher than the average total cost of 3 pizzas, so the average total cost curve is increasing at a quantity of 3 pizzas. B. is lower than the average total cost of 3 pizzas, so the average total cost curve is decreasing at a quantity of 3 pizzas. C. is equal to the average total cost of 3 pizzas, so the average total cost curve is minimized at a quantity of 3 pizzas. D. is higher than the average fixed cost of 3 pizzas, so the average fixed cost curve is increasing at a quantity of 3 pizzas.