If PX > MCX, society gains by producing more X.
Answer the following statement true (T) or false (F)
True
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Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda. If they then still sell almost the same number of sodas per day, this suggests:
A. there are few other places to purchase soda on campus. B. the price elasticity of demand for soda is equal to 1. C. students do not have good nutritional information. D. soda purchases represent a large fraction of students' budgets.
If Cruise with Us and Cruise the World are two luxury cruise lines in tacit collusion and Cruise with Us launches a new advertising campaign that states that it will meet any competitor's price on a comparable cruise, Cruise with Us might be tacitly signaling to Cruise the World that they are willing to ________.
A) maintain current the price B) cut price is exactly half C) raise their price D) lower their price
Taxes, subsidies, and monopolies help us achieve allocative efficiency
a. True b. False Indicate whether the statement is true or false
Parity pricing was designed to
a. create income equality among farmers b. maintain farmers' purchasing power relative to nonfarmers' purchasing power c. provide an incentive for farmers to leave farming for nonfarming economic activity d. encourage investment in agriculture by providing below-equilibrium prices for agricultural equipment e. restore market prices in agriculture to their equilibrium levels