In the long run, a firm can change
A) nothing.
B) only one input, such as plant size.
C) all inputs.
D) None of the above are correct.
Answer: C
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According to the U.S. Robinson-Patman Act of 1936, price discrimination
A) is always illegal. B) is legal unless it harms competition. C) may be used to drive rivals out of business. D) can only be justified if the price discrimination is due to actual cost differences.
An example of a market failure is
A. when not everyone who wants to see a major league football game can. B. when there is an increase in gasoline demand and a shortage develops. C. when the market prices of some vehicles are too high for some buyers. D. a firm is dumping toxic waste that is making people sick.
Explain the basic arguments for supply-side economics.
What will be an ideal response?
If a 1 percent decrease in the price of a pound of oranges results in a smaller percentage decrease in the quantity supplied
A) demand is elastic. B) demand is inelastic. C) supply is elastic. D) supply is inelastic.