Select the graph below that best shows the change in the market specified in the following situation: In the market for chicken, when the price of a substitute, such as beef, decreases
Assume that the graphs show a competitive market for the product stated in the question.
A. Graph A
B. Graph B
C. Graph C
D. Graph D
B. Graph B
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Emma uses a linear model to forecast quarterly same-store sales at the local Garden Center. The results of her multiple regression is: Sales = 2,800 + 200•T - 350•D where T goes from 1 to 16 for each quarter of the year from the first quarter of 2006 (‘06I) through the fourth quarter of 2009 (‘09 IV). D is a dummy variable which is 1 if sales are in the cold and dreary first quarter, and
zero otherwise, because the months of January, February, and March generate few sales at the Garden Center. Use this model to estimate sales in a store for the first quarter of 2010 in the 17th month; that is: {2010 I}. Emma's forecast should be: a. 5,950 b. 6,200 c. 6,350 d. 6,000 e. 5,850
Which of the following is a TRUE statement about a monopoly?
A. A monopoly does not necessarily earn positive economic profits. B. As long as the demand curve slopes down, a monopoly can always find some price-output combination that generates positive economic profits. C. A monopoly must earn an above-normal profit to stay in business. D. As long as there are barriers to entry, a monopoly can always find some price-output combination that generates positive economic profits.
A monopolist who has a horizontal ATC schedule and perfectly price discriminates
A. leaves buyers a decreased but still positive amount of consumer surplus. B. does not change the amount of consumer surplus that buyers had before the monopolist perfectly price discriminated. C. appropriates all consumer surplus as profit. D. increases the amount of consumer surplus that is lost to the buyers and not gained by the monopolist.
The relationship between a bond's maturity and the interest rate it pays is called the
A. desired investment curve. B. federal funds rate. C. yield curve. D. amortization schedule.