At a price of $100, Beachside Canoe Rentals rented 11 canoes. When it increased its rental price to $125, 9 canoes were rented. Calculate the absolute value of the price elasticity of demand for canoe rentals using the midpoint formula
A) 2
B) 1.25
C) 0.9
D) 0.75
Answer: C
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The table shows short-run average total cost schedules for three plants of different sizes that a firm might build in the long run.Plant 1Plant 2Plant 3OutputATCOutputATCOutputATC10$1010$1510$20209201020153083073010409401040850105014509What is the long-run average total cost of producing 30 units of output?
A. $8 B. $9 C. $7 D. $10
The fact of increasing opportunity costs means that a production possibilities frontier will
A) be a straight line. B) reach a maximum and then gradually decrease. C) bow outward. D) shift outward over time.
With marketable permits to pollute, efficiency can be obtained if
A) the regulator knows the marginal cost schedule of every firm. B) firms with low marginal costs of eliminating pollution sell their permits. C) firms with low marginal costs of eliminating pollution buy up more permits. D) only one firm gets the permits to pollute.
When a tariff is placed on running shoes, the ________ to local businesses and local consumers are likely to be greater in dollar terms than the ________ to the owner of a shoe factory and its workers
A) gains; gains B) gains; losses C) losses; gains D) losses; losses