Suppose that soup is measured on the horizontal axis and bread is measured on the vertical axis. At an interior solution:
A. MRSSB = PS/PB.
B. MRSSB = - PS/PB.
C. MRSSB = PB/PS.
D. MRSSB = - PB/PS.
A. MRSSB = PS/PB.
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An inherent weakness of ________ is the absence of the profit incentive
A) government-directed credit B) government-backed deposit insurance C) private loans D) prudential supervision
For the monopolistically competitive firm, the demand curve it faces will be steeper the:
A. more easily the good can be substituted. B. more complement goods are available. C. less easily the good can be substituted. D. less complement goods are available.
Suppose that the price elasticity of supply of cheese is 0.80. If the price of cheese rises by 20%, the quantity supplied will increase by 16%.
Answer the following statement true (T) or false (F)
Your upstairs neighbor is the first-chair violinist in the local symphony orchestra. Because you are very fond of violin music, you sit on your balcony each night to listen to her rehearse. In this case, your violin-playing neighbor is an example of a
A. Pareto good. B. good that provides an external benefit. C. public good. D. good that imposes an external cost.