In an effort to serve consumers who have become more health conscious, a number of firms have begun developing small electronic devices which allow people to monitor various health conditions
These firms are reacting to which of the three key economic ideas?
A) Optimal decisions are made at the margin. B) Firms attempt to maximize revenues.
C) People respond to economic incentives. D) People are rational.
C
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If Tom does not tattle, what would Sarah's best response be
a. Hit b. Not hit c. Run d. Hide
Suppose you own a firm that produces widgets and is a monopoly. The market demand is given by the equation P = 100 - 2Q, where P is the price of gadgets and Q is the quantity of gadgets sold per week. The firm's marginal costs are given by the equation MC = 16Q. When the monopolist maximizes profits the price elasticity of demand for widgets is
A. 9. B. 36. C. 0.02. D. 0.5.
Related to the Economics in Practice on page 83: Which of the following best explains why the people who wait for hours to acquire tickets to free performances earn less on average than the people who actually see those performances?
A. People interested in live performances are likely to have access to other forms of entertainment, such as television and radio. B. High-wage individuals are more likely to have schedule conflicts that prevent them from using their tickets. C. The value of time spent waiting in line is less for people who earn less money. D. People who earn more money are less likely to be aware of the opportunity to acquire free tickets.
A changes in which of the following shifts the demand curve for hamburgers?
A) an increase in the price of the meat used to produce hamburgers B) an increase in the price of a hamburger C) a fall in the price of french fries, a complement for hamburgers D) an increase in the number of hamburger restaurants