What would the profits be for Mattie's Dairy if Irene does not enter the market?
a. 5million
b. 10million
c. 15million
d. Zero
b
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What arguments can be made in favor of product differentiation and advertising?
What will be an ideal response?
Suppose you like shoes and your income doubles. If shoes are a normal good, then an increase in your income will cause
a. the market demand for shoes to shift to the left b. the market demand for shoes to shift to the right c. your quantity demanded of shoes to decrease d. the market's quantity demanded of shoes to decrease e. market demand for shoes to shift to the left and your own quantity demanded of shoes to shift to the right
Suppose the price elasticity of supply for coffee is equal to one. 1,400 cups of coffee are supplied when its price is $4.0 per cup. If the price of coffee decreases to $3.60 per cup, its supply will: a. decrease to 1,260 cups
b. increase to 1,540 cups. c. decrease to 1,300 cups. d. remain the same at 1,400 cups.
If economics is correct in its assumption that people are rational, why then would anyone choose to smoke cigarettes?