If a consumer purchases more of good B when his income rises, good B is an inferior good
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Consumption or household spending of an economy comprises of both consumer spending and business spending
a. True b. False Indicate whether the statement is true or false
Sales are recorded under cash basis accounting when:
a. The goods or services are provided regardless of whether the cash is collected from the customers b. The bookkeeper has time to record the transactions c. The cash is collected from the customers d. The costs are incurred to earn the revenue
Suppose Lydia owns the only lawn-mowing business in the small town of Pleasant Pastures. There are 8 people each week whose lawns she might cut, each with a reservation price given in the accompanying table. Assume that the marginal cost of mowing each lawn is constant and equal to $25. CustomerReservationPriceA$36B$34C$32D$30E$28F$26G$24H$22If Lydia charges the same price to all of her customers, then what price should she charge if she wants to maximize her profit.
A. $32 B. $34 C. $30 D. $26
Relative to a profit-maximizing competitively organized industry that is producing 6,000 units of output at a price of $7 per unit, firms acting collusively under the same circumstances would produce ________ units of output and charge a price of ________ per unit.
A. more than 6,000; more than $7 B. less than 6,000; less than $7 C. 6,000; $7 D. less than 6,000; more than $7