If P = MC and MC 

A. positive
B. negative
C. break-even
D. zero

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Answer: B

Economics

When the price of corn increases, the quantity of corn demanded falls. Explain this change in terms of income and substitution effects

What will be an ideal response?

"The price of digital cameras fell because of improvements in production technology. As a result, the demand for non-digital cameras decreased

This caused the price of non-digital cameras to fall; as the price of non-digital cameras fell the demand for non-digital cameras decreased even further." Evaluate this statement. A) The statement is false because digital camera producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits. B) The statement is false because the demand for non-digital cameras would increase as the price of digital cameras fell. C) The statement is false. A decrease in the price of digital cameras would decrease the demand for non-digital cameras, but a decrease in the price of non-digital cameras would not cause the demand for non-digital cameras to decrease. D) The statement is false because it confuses the law of demand with the law of supply.

Pricing between two networks that are completing each other's calls is not affected by the volume of calls going in the two directions

Indicate whether the statement is true or false

If inflation is greater than expected, then the unemployment rate is

a. above the natural rate. In the long run the short-run Phillips curve will shift right. b. above the natural rate. In the long run the short-run Phillips curve will shift left. c. below the natural rate. In the long run the short-run Phillips curve will shift right. d. below the natural rate. In the long run the short-run Phillips curve will shift left.