Which of the following factors will make the demand for a product relatively elastic?
A. The good is considered a necessity.
B. There are few substitutes.
C. The time interval considered is long.
D. Purchases of the good require a small portion of consumers' budgets.
Answer: C
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As a price setter, a monopoly
a. can establish any price it wants for each output level b. can sell any output level it wants for each price c. is constrained by the market demand curve d. can use its pricing policy to shift the market demand curve e. faces an upward-sloping demand curve for its output
Firms in which type of market structure have the least incentive to advertise?
a. monopoly b. oligopoly c. monopolistic competition d. perfect competition e. all have an equal incentive
Some take issue with the human capital argument that employers pay more for college graduates because firms recognize the value of human capital. What are two alternative explanations for why college grads receive higher pay?
On-budget expenditures:
What will be an ideal response?