In ________ markets, the elasticity of supply tends to be positive.
A. output
B. all
C. input
D. labor
Answer: A
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To avoid counting the same output more than once, the calculation of GDP includes
A. Only the output produced by U.S. factors of production. B. The value added at each stage of production plus intermediate goods. C. Intermediate goods plus final goods. D. Only the value of final goods.
According to Figure 9.1, saving equals zero at an income level of
A. $2,000 billion. B. $0. C. $1,000 billion. D. $500 billion.
Which of the following is a question answered with normative economic reasoning?
A. If the college offers free textbooks for students, will more students read their textbooks? B. If the college provided less financial aid for out-of-state students, would more in-state students benefit? C. If the college increased its enrollment requirements, would class size decline? D. Should the college increase tuition to fund its athletic programs?
Pie-Oh-My, a monopolistically competitive firm, is producing 80 gourmet pies per day and selling each pie for $32. At that production level ATC is $40, AVC is $30, AFC is $10, and both MR and MC are $16. In the short run, this firm should
A. increase output to the point where price equals marginal cost. B. shutdown and produce zero pies and pay fixed costs. C. decrease output to the point where price equals average total cost. D. continue to produce 80 pies, as price is greater than AVC.