Many theaters sell empty seats at a deep discount just before show time. What economic concept is displayed by this behavior?
A. Price optimization
B. Thinking at the margin
C. Sunk costs
D. Consumer demand
Answer: B
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It seems quite possible that cigarette companies concealed information about the effects of smoking on health, causing cigarette prices to be __________ and cigarette sales to be __________ than would have been the case under symmetric information.
A. higher; higher B. higher; lower C. lower; higher D. lower; lower
Refer to above figure. If manufacturing labor were to increase to OmL2, how much value would the economy as a whole gain?
What will be an ideal response?
An increase in demand for a product will
a. not affect the value of resources. b. reduce the production of the good as the price rises. . c. decrease the profits of sellers. d. draw more resources into the production of the good. e. not affect the rate of production since production is fixed.
In a perfectly competitive market, if the price of apples per bushel is $7, what is the marginal revenue?
a. $1 b. $4 c. $7 d. $10