The cross-price elasticity of demand for bacon and eggs likely would be negative because bacon and eggs are complements for many people
a. True
b. False
Indicate whether the statement is true or false
True
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A firm using a two-part tariff faces a tradeoff because
A) any increase in consumer surplus must be offset by a decrease in producer surplus. B) the only way to increase the fixed-fee portion of the price is to lower the per-unit portion of the price. C) the only way to increase total revenue is to lower per-unit profit. D) the smaller the variation between the parts of the price, the greater the deadweight loss generated by the pricing scheme.
Which of the following is consistent with diminishing marginal returns?
a. increasing labor by 10% and output increasing 10%. b. increasing labor by 10% and output prices increase by less than 10%. c. increasing labor by 10% and the marginal product of labor increasing 10%. d. increasing labor by 10% and output increasing by less than 10%.
Following Example 8.8 in the book, the long-run supply of rental housing in most U.S. communities is more inelastic than the long-run supply of owner-occupied housing. Why?
A) Local rental housing regulations B) Limited demand for rental housing C) Limitations on the urban land available for rental housing D) A and C above are correct
When people make choices they typically know with certainty which choice is best
a. True b. False Indicate whether the statement is true or false