Because the price effect is smaller when there are ________ firms, each firm will increase its quantity by ________ before the price effect and quantity effect are equal.
A. less; more
B. similar; less
C. more; more
D. more; less
Answer: C
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Sitting through a terrible movie till the end because you already bought the ticket is an example of:
A. sunk cost fallacy B. making a decision at the margin. C. rational behavior. D. negative utility endorsement.
The consumer's optimum is where
a. MUx/MUy = Py/Px. b. MUx/Py = MUy/Px. c. MUx/MUy = Px/Py. d. None of the above is correct.
When individuals are damaged by an illegal arrangement to restrain trade, which law allows them to pursue civil action and recover up to three times the damages sustained?
a. Trade Damage Act b. Clayton Act c. Sherman Act d. No law allows individuals to pursue civil action and recover up to three times the damages sustained.
In order for a country's real GDP to increase without inflation or deflation over long periods time,
A. either its aggregate demand or its aggregate supply must increase. B. its aggregate supply must increase. C. its aggregate demand must increase. D. both its aggregate demand and its aggregate supply must increase.