Farmers can produce wheat and/or rice. What will happen in the wheat market if there is an increase in the price of rice?
a. Wheat supply will increase. b. Wheat supply will decrease.
c. Wheat demand will increase. d. Wheat demand will decrease.
b
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If a life insurance company offers coverage regardless of age, health status, or smoking history, it is likely to suffer
A) moral hazard problems. B) adverse selection problems. C) lower costs. D) low demand for its product.
If economies of scale are present, a firm can enhance its profits by
a. operating at any larger scale. b. operating at any larger scale up to the optimal scale. c. operating beyond the optimal scale. d. operating at a lower scale.
If movie theatres decided to increase the price for the movie tickets, holding other factors constant, what would happen to the demand for popcorn in the theatres? a. the demand for popcorn would shift to the left because popcorn and movies are substitute goods
b. the demand for popcorn would shift to the left because popcorn and movies are complementary goods. c. the demand for popcorn would shift to the right because popcorn and movies are substitute goods. d. the demand for popcorn would shift to the right because popcorn and movies are complementary goods.
Curve (1) in the diagram is a purely competitive firm's:
A. total cost curve.
B. total revenue curve.
C. marginal revenue curve.
D. total economic profit curve.