Suppose that because of inflation, the absolute price of a gallon of milk increases by 20% and the absolute price of a gallon of gasoline increases by 10%. In this situation, the price of milk relative to the price of gasoline
a. falls.
b. rises.
c. remains the same.
d. changes unpredictably.
b. rises.
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Which of the following is true
a. Increasing output always leads to increase in profits b. Increasing outputs increase profits if price is above marginal cost c. Increasing output increases profits if price is lea than marginal costs d. Increasing output always decreases profits
An example of a monopolistically competitive industry is grocery stores.
Answer the following statement true (T) or false (F)
All of the following statements about variable costs are true except
A. they are equal to total costs in the long run. B. they are constant as output increases. C. they are zero if output is zero. D. they are equal to the product of average variable cost and the output level.
Between 1870 and 2010, among the United States, Germany, Japan, and Australia, ________ grew at the fastest rate and ________ grew at the slowest rate.
A. Japan; Australia B. Germany; United States C. Australia; Japan D. United States; Germany