Which of the following is a typical example of a firm in a constant-cost industry?
a. Even though Snappy, Inc. increases its demand for rubber, the market price for rubber is unaffected.
b. When TRN, Inc increases its demand for aluminum, the market price for aluminum rises.
c. After RV Sports exits a market, the market wage for unskilled labor drops.
d. QuickEats, a fast-food chain, shuts down, causing the market price for beef to drop.
a. Even though Snappy, Inc. increases its demand for rubber, the market price for rubber is unaffected.
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In the principal-agent relationship, the agent is
A) the owner of a resource that has hired another party to act on his behalf. B) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. C) the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party. D) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.
Although pollution is caused by a failure of the market, many economists believe that the best way to protect the environment is to utilize the price mechanism.
Answer the following statement true (T) or false (F)
The cross-price elasticity of demand between product X and product Y is -1.2. It can be inferred that X and Y are
A. complements. B. inferior. C. substitutes. D. unrelated.
How does one determine whether demand is elastic, inelastic, or unit elastic?
What will be an ideal response?