Danny Sever owns an avocado grove and sells his avocados to wholesalers. Danny has absolutely no ability to select the price. We know then that he
a. will go out of business because price will end up being lower than his costs
b. is a price-maker
c. is in a monopolistically competitive industry
d. cannot maximize profit
e. has a horizontal individual demand curve
E
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The U.S. economy experienced fluctuations in employment and output over the last half of the twentieth century. However, the length of the average recession has been about the same as the length of the average expansion
a. True b. False
Which of the following statements accurately explains the superstar phenomenon in wages?
a. Better carpenters earn more than average carpenters because people are willing to pay higher prices for higher-quality work. b. The more productive an author is, the more books she can write each year, so the more she earns. c. Talented movie stars earn more than equally talented mechanics because technology allows the delivery of the services provided by the movie stars to all interested customers. d. Athletes get paid for performing services that everyday people perform as hobbies.
Based on the table for total, marginal, and average revenue, at what whole dollar unit price is total revenue maximized?
a. $2
b. $3
c. $4
d. $5
Most demand curves are relatively elastic in the upper-left portion because the original price:
A. and quantity from which the percentage changes in price and quantity are calculated are both large. B. and quantity from which the percentage changes in price and quantity are calculated are both small. C. from which the percentage price change is calculated is small and the original quantity from which the percentage change in quantity is calculated is large. D. from which the percentage price change is calculated is large and the original quantity from which the percentage change in quantity is calculated is small.