Evaluate this statement: "People engaged in economizing behavior will always buy the lowest priced item they can find."
As long as price is the only factor, we would expect people to buy the lowest priced product. However, once we consider quality, ease of operation, performance, durability, looks, etc., we can see why people would not necessarily buy the lowest priced item. While people generally seek products that yield the most benefits relative to costs, a product that can provide additional benefits would lead to a willingness to pay a higher price.
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The implications of the zero economic profit condition in a perfectly competitive market implies that the opportunity cost of capital is integrated into the firm’s cost relationships.
Answer the following statement true (T) or false (F)
An example of a tax-funded program intended to provide basic human needs is the provision of:
A. public education. B. police protection. C. health care. D. national defense.
Which of the following would be likely to expand a production possibilities curve?
a. a decrease in unemployment b. a decrease in price levels c. an increase in price levels d. none of the above
During the rapid urbanization and industrialization between 1815 and 1859, there were no economic depressions.
Indicate whether the statement is true or false