In the figure above, the demand is inelastic in the range of prices between
A) $3.50 and $4.50 per cup
B) $2.50 and $3.50 per cup
C) $1.00 and $2.00 per cup
D) $2.25 and $4.50 per cup
E) $2.75 and $3.75 per cup
C
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Which of the following factors could cause the economy to experience supply-side inflation?
A) increased security about jobs and future income B) Develop new technology to increase productivity. C) government laws which say that the average work week must be reduced by one hour every year D) Increase the number of immigrants allowed into the country.
Economies of team production exist when the
A) average cost of producing a unit of a good falls as its output rate increases. B) firm buys parts or products from other firms. C) firm uses specialized resources to produce a range of goods and services. D) individuals in a group specialize in mutually supportive tasks in the production process.
Refer to Figure 13-17. Suppose the firm is currently producing Qf units. What happens if it increases its output to Qg units?
A) It will move from a zero profit situation to a loss situation B) Its average cost of production will fall and its profit will rise. C) It will move from a zero profit situation to a profit situation D) It will be taking advantage of economies of scale and will be able to lower the price of its product.
To minimize total costs for a particular rate of output, a firm will equate
A) the average cost of each factor. B) the marginal revenue of each factor. C) the marginal physical product per dollar spent on each factor. D) the marginal revenue product and variable marginal revenue for each factor.