The case of production with a single variable input is analogous to
A. changing the use of land, labor, and capital in production by a constant absolute amount.
B. a controlled laboratory experiment in which the scientist permits one variable to change at a time.
C. changing the use of land, labor, and capital in production by a constant percentage.
D. specialization in one particular product by a company.
Answer: B
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The Sherman Act prohibited
A) collusive price agreements among rival sellers. B) setting price above marginal cost. C) marginal cost pricing. D) selling below average total cost.
Studies show that
A) mergers create considerable shareholder value. B) mergers lead to economic profit. C) mergers generally do not create shareholder value. D) 'dogs' and 'cash cow' do not need to be merged.
The income elasticity of demand for a good that is extremely necessary for the existence of its consumers is close to zero
a. True b. False Indicate whether the statement is true or false
Suppose the economy is in long-run equilibrium. Senator A succeeds in getting taxes raised. At the same time, Senator B succeeds in getting major restrictions on logging removed. In the short run
a. real GDP will rise and the price level might rise, fall, or stay the same. b. real GDP will fall and the price level might rise, fall, or stay the same. c. the price level will rise, and real GDP might rise, fall, or stay the same. d. the price level will fall, and real GDP might rise, fall, or stay the same.