An inferior good is one that consumers buy in smaller quantities when the price of that good rises.
Answer the following statement true (T) or false (F)
False
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Which of the following is likely to lead to a left shift in the supply curve for labor to a firm?
A) The introduction of labor-saving technology B) The establishment of a new firm nearby that offers higher wages C) An increase in the opportunity cost of leisure D) The introduction of labor-complementary technology
Reporters from the Wall Street Journal found that the office supply store Staples charged different prices for the same product to different online customers based primarily on
A) how many times the customer had looked up the product on its Website. B) the gender of the customer. C) the age of the customer. D) how close the customer's zip code was to competitors' stores.
Strategic complementarities may help explain business cycles because such complementarities may lead to
A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) a downward-sloping labor supply curve.
Referring to the above graphic, which of the following statements is FALSE?
A) In panel (a), a competitive situation is shown in which equilibrium is established at the intersection of D and S at point E. B) In panel (a), the equilibrium price is Pe and the equilibrium quantity Qe. C) The price the monopolist charges in panel (b) at Pm is lower than the price that the competitive producer charges. D) The monopolist produces at Qm, and charges a price ofPm, while maximizing profits at the intersection of MC and MR.