Which of the following examples accurately reflects monopolistic competition?
a. Jake charges the amount it costs him to make a highchair.
b. Smooth Tummy charges much more for an antacid than it costs to produce it.
c. A church pays Roberto much less for a statue than it cost him to make it.
d. Alba donates a scarf she knitted to a homeless shelter.
b. Smooth Tummy charges much more for an antacid than it costs to produce it.
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We calculate the price elasticity of demand as the
A) ratio of the percentage change in the quantity demanded to the percentage change in price. B) change in quantity divided by the change in price. C) ratio of the percentage change in the price to the percentage change in quantity. D) percentage change in the quantity demanded divided by the percentage change in income. E) equilibrium quantity divided by the equilibrium price.
In the first years of a professional athlete's career, the athlete is "under reserve," which means that he or she cannot negotiate with other teams. This creates a de facto
A) monopolist. B) monopsony. C) duopoly. D) bilateral monopoly.
Which of the following events would bring about a change in the value of the marginal product of labor?
a. technological progress that alters the amount a worker can produce b. a change in the marginal product of labor c. a change in the price of the product that the firm sells d. All of the above are correct.
Which of the following statements is true about individuals and utility?
A. Individuals seek to maximize their income, not utility. B. Individuals will either minimize or maximize utility depending on the situation. C. Individuals rarely try to maximize their utility. D. Individuals seek to maximize utility.