When the price of audio books, a normal good, falls, causing your purchasing power to rise, you buy more of them due to
A) the deadweight loss effect. B) the elasticity effect.
C) the income effect. D) the substitution effect.
C
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The table has the marginal products for workers at? Bart's Bats, a baseball bat factory. Using the above? table, if the price of a bat is? $8, then the value of the marginal product of labor of the fourth worker is
A. ?$1.375. B. $40. C. $0.625. D. 5 bats. E. None of the above answers is correct.
Refer to Figure 15-6. The monopolist's total revenue is
A) $1,116. B) $1,488. C) $1,726.40 D) $1,826.
If the per-worker production function shifts up
A) it now takes more capital per hour worked to get the same amount of real GDP per hour worked. B) the per-worker production function becomes flatter. C) an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. D) negative technological change has occurred in the economy.
Explain how economic profits are reduced to zero as new firms enter a monopolistically competitive industry