If baked potatoes and sour cream are complements, then an increase in the price of sour cream decreases the demand for baked potatoes
a. True
b. False
Indicate whether the statement is true or false
True
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A firm's fixed costs are $10 million. It sets the price at $1800 per unit and has marginal costs of $1,000. What's the firm's contribution margin per unit?
a. $12 b. $10 c. $8 d. $4
The existence of a deadweight loss associated with a monopoly can be seen because
A) consumers are willing to pay more for the last unit of output than it cost to produce. B) the cost of the last unit produced is more than consumers are willing to pay for it. C) the producer surplus is larger than in a competitive market. D) None of the above.
Graphically, the average productivity of labor is illustrated by:
a. the slope of the total product curve at the relevant point. b. the slope of the marginal productivity curve at the relevant point. c. the negative of the slope of the marginal productivity curve at the relevant point. d. the slope of the chord connecting the origin with the relevant point on the total output curve.
According to the Coase theorem, the private market will need government intervention in order to reach an efficient outcome
a. True b. False Indicate whether the statement is true or false