For computers and other business equipment, small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment, and the long-run income response tends to be smaller
Industries that face demand behavior of this type are known as: A) natural monopolies.
B) cartels.
C) cyclical industries.
D) constant-cost industries.
C
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Suppose you purchase a call option to buy IBM common stock at $35 per share in September. The current price of IBM is 37 and the option premium is 4
What is the intrinsic value of the option? As the expiration date on the option approaches, what will happen to the size of the option premium?
Which of the following explains the recent decline in union membership in the United States?
a. smaller government safety nets b. slower technological change c. the change from a manufacturing to a service-based economy d. increasing market concentration e. none of the above
When choosing the production level for tomorrow you find that at an output of 100 units, the total variable costs are $20,000 and the average fixed cost is only $50 . If the market price is $200, you should
a. hire an economic consultant b. produce at a loss equal to $5,000 c. produce more than 100 units d. produce fewer than 100 units e. produce where MC is at a minimum
Assume the US has a comparative advantage versus Brazil in producing large jets (LJs) while Brazil has a comparative advantage in producing small jets (SJs). The opportunity cost of producing another LJ is 2 SJ in the US and 4 SJ in Brazil. Without trade, the maximum number of LJs the US can produce is 60 and the maximum number of SJs the US can produce is 120. If the US and Brazil agree to trade at the rate of 1 LJ for 3 SJs, what is the maximum number of small jets that would be available in the US if the US produces all LJs and trades them all away to Brazil at the agreed upon rate of trade?
a) 20 b) 60 c) 120 d) 180 e) 360