The figure above shows Bill's Hotdogs, a monopolistically competitive firm. If other firms enter the market and have hot dogs that are very close substitutes for Bill's Hotdogs, then the demand curve for Bill's Hotdogs will ________
A) shift leftward and become more elastic
B) shift rightward and become more elastic
C) shift rightward and be parallel to the original demand curve
D) shift leftward and be parallel to the original demand curve
A
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Those factors that lead to differences in the proximate causes of prosperity between nations are referred to as:
A) endogenous causes of prosperity. B) implicit causes of prosperity. C) explicit causes of prosperity. D) fundamental causes of prosperity.
Refer to Table 17-5. Oil Can Harry's, a new automobile service shop, is ready to start hiring. The table above shows the relationship between the number of mechanics the firm hires and the quantity of oil changes it produces
a. Suppose the price of an oil change is $20. Complete the table by filling in the values for marginal product and marginal revenue product. b. Oil Can Harry's is an input price-taker. Suppose the wage paid to mechanics is $80 per day. What is the profit-maximizing number of mechanics? c. Suppose the wage rate rises to $100 per day. (i) What happens to the firm's demand curve for mechanics? (ii) What happens to the profit-maximizing quantity of mechanics? d. Suppose the wage rate is $60 per day and the price of an oil change is now $15. (i) What happens to the firm's demand curve for mechanics? (ii) What happens to the profit-maximizing quantity of mechanics?
If Cheesy Cheese agrees to sell its cheese to Fresh Pizza on the contractual condition that Fresh Pizza purchases 100 percent of the cheese needed to make its pizzas from Cheesy Cheese, this is an example of ________.
A) a horizontal contract B) a tying arrangement C) an exclusive dealing contract D) a requirements contract
A concern about crowding out caused by increased government borrowing is that:
a. interest rates on private borrowing fall. b. lower rates of economic growth can result from a decline in business investment spending. c. the federal government may default on its loans. d. foreign lenders find it less attractive to help finance federal deficits.