Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar rises from $65 to $75, the market quantity demanded would
A) decrease by 52 oz. B) decrease by 36 oz. C) increase by 36 oz. D) increase by 52 oz.
B
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Workfare requires able-bodied individuals to participate in work-related activities in order to receive transfer payments.
A. True B. False C. Uncertain
Ray's Radios believed the synergies between radio production and battery production could be realized if he expanded. However, due to overseeing the battery expansion Ray devoted less time to the radio business leading to the radio unit costs increasing. At this point, Ray's Radios should
a. Increase production of the batteries b. Divest itself from the production of the batteries c. Shut down the production of the batteries d. None of the above
As output increases, a typical firm's unit costs
a. decrease because the firm buys its inputs in large quantities b. increase because the supply of inputs increases c. remain constant d. increase due to the increasing scarcity of resources e. decrease as firms take advantage of diseconomies of scale
The profit-maximizing output of a monopolistic competitor is determined at the point of intersection of the demand curve and the marginal cost curve
a. True b. False Indicate whether the statement is true or false