One reason Starbucks experienced a decline in sales in the late 2000s is because
A) the product they offered was becoming less differentiated from their competitors' products.
B) the coffeehouse market transitioned from being monopolistically competitive to perfectly competitive.
C) barriers to entry became more restrictive in the coffeehouse market.
D) the number of competitors in the market declined dramatically.
Ans: A) the product they offered was becoming less differentiated from their competitors' products.
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Pork can be used to produce bacon or sausage, but not both. If the price of bacon rises for some reason, then, everything else equal,
a. the price of sausage will rise. b. the price of sausage will fall. c. the resources used in raising Pork will become more expensive. d. the resources used in raising Pork will become less expensive.
A. production takes place where ATC is minimized. B. marginal revenue equals marginal cost and price equals average total cost. C. normal profit is zero and price equals marginal cost. D. economic profit is zero and price equals marginal cost
A. be unaffected. B. shift to the left. C. become more elastic. D. shift to the right.
A decrease in aggregate demand as a consequence of government decisions to alter its levels of expenditure and revenues involves which of the following?
a. Decreases in spending. b. Increases in tax rates and collections and decreases in spending. c. Decreases in tax rates, collections, and spending. d. Increases in spending and decreases in tax rates and collections.
A bank has no excess reserves and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will now be
A) -$5,000. B) -$1,000. C) $1,000. D) $5,000.