If the single restaurant in an Eastern Kentucky town is currently charging a price for its ham and eggs where the demand is unit elastic, its marginal revenue for ham and eggs is
A) negative.
B) positive.
C) zero.
D) maximized.
E) undefined.
C
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Because of a sharp increase in the price of gasoline, the demand for Sports Utility vehicles (SUVs) has decreased. So, the high price of gasoline leads to a
A) leftward shift of the demand curve for SUVs and the supply curve of SUVs. B) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs. C) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs. D) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs. E) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.
Pick the true statement regarding the notion of competition as a process versus the model of perfect competition
A) The process notion allows for uncertainty and incomplete information; perfect competition doesn't. B) The process notion allows for price searching activity; perfect competition doesn't. C) The process notion allows for product differentiation; perfect competition doesn't. D) The process notion allows for a small number of participants; perfect competition doesn't. E) All of the above are true.
When the United States has a deficit on its current account, this means that
A. the dollar value of goods exported must exceed the dollar value of goods imported. B. in this year, Americans supplied more dollars than were demanded by foreigners for purchasing American goods and services and for interest and investment income. C. in this year, Americans supplied fewer dollars than were demanded by foreigners for purchasing American goods and services and for interest and investment income. D. the dollar value of goods imported must exceed the dollar value of goods exported.
A decrease in the expected price of corn would likely do the following to the current supply and demand for corn:
A) increase both the demand and the supply. B) decrease both the demand and the supply. C) increase the demand, but decrease the supply. D) increase the supply, but decrease the demand.