The free-market system coordinates output decisions by pushing
A. up price when there is a shortage.
B. down price when quantity demanded exceeds quantity supplied.
C. up price when there is a surplus.
D. up price when quantity supplied exceeds quantity demanded.
Answer: A
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Gamble A results in $10 with probability 0.4 and $30 with probability 0.6. Gamble B results in $20 with probability 1. If an individual prefers Gamble A to Gamble B, the independence axiom implies that he prefers Gamble C that gives $0 with probability 0.5, $10 with probability 0.2 and $30 with probability 0.3 to Gamble D that results in $20 with probability 0.5 and $0 with probability 0.5.
Answer the following statement true (T) or false (F)
The above table gives data on two variables. If these data were graphed, the slope of the line would be
A) 1. B) -2. C) 2. D) -4.
If addiction makes cigarettes such a necessity, is it correct to think that cigarettes are perfectly inelastic in both supply and demand
What will be an ideal response?
The monopolist and the perfectly competitive firm both choose to maximize profits by choosing the level of output where:
A. MC equals MR and price is equal to minimum ATC. B. the two types of firms make their profit-maximizing decision differently. C. MC equals MR and price is equal to AR. D. MC equals AR and price is equal to minimum ATC.