According to the market demand curve, what would consumers in this market most likely do if the price per pound decreased from $3 to $1?
a. They would decrease their purchases of coffee by about half the amount.
b. They would decrease their purchases of coffee by one third the amount.
c. They would increase their purchases of coffee by more than double the amount.
d. They would increase their purchases of coffee by less than double the amount.
c. They would increase their purchases of coffee by more than double the amount.
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If the percentage change in price is 10 percent and the demand is elastic, then the percentage change in the quantity demanded
A) is greater than 0 percent but less than 10 percent. B) is larger than 10 percent. C) equals 0 percent. D) equals 10 percent. E) More information is needed to determine the magnitude of the change in the quantity demanded.
With all other inputs held fixed, the marginal product of any input must eventually increase as more of that input is hired. ?
Answer the following statement true (T) or false (F)
Suppose a fishing boat currently brings 10,000 fish to market and earns a profit of $40,000 when the price of fish is $8 . Suppose the boat dealer had overcharged the boat owner for the boat. Upon receiving a refund of $25,000 from the dealer, what will happen to the AVC of producing 10,000 fish?
a. increases by $25 b. increases by $2.50 c. does not change d. decreases by $2.50 e. decreases by $25
A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm:
A. should hire more labor because this will increase profits. B. should hire more labor, although this may either increase or decrease profits. C. is currently hiring the profit-maximizing amount of labor. D. is selling its product in an imperfectly competitive market.