All points above the budget line are
A) inferior to every point on the budget line.
B) preferred to every point on the budget line.
C) unaffordable.
D) Both answers B and C are correct.
C
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Which of the following is true in both perfect competition and monopoly?
a. Firms produce a differentiated product. b. Firms cannot earn economic profit in the long run. c. Individual firms have no ability to control the price of their output but must accept the market price. d. Firms go out of business in the long run if total revenue cannot cover total cost. e. Firms can earn economic profit in the long run.
The price of soccer balls increases from $35 to $40, and as a result, the quantity demanded decreases from 250 to 200 . Over this price range,
a. demand is elastic. b. demand is inelastic. c. demand is of unitary elasticity. d. there is insufficient information to determine the price elasticity of demand.
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Refer to the accompanying table. Corey's opportunity cost of making of a pizza is delivering: Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015
A. 3/2 of a pizza. B. 2 pizzas. C. 2/3 of a pizza. D. 1/2 of a pizza.