When very few substitutes for a good exist, demand will be
A. inelastic.
B. elastic.
C. perfectly elastic.
D. unit-elastic.
Answer: A
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Refer to Monopoly Supplier and Manufacturer. The vertical merger causes social gain to
The following questions refer to the accompanying diagram, which shows a monopoly leather supplier selling leather to a monopoly shoe manufacturer. The leather supplier initially produces QM and charges the shoe manufacturer PM. Then the leather supplier acquires the shoe manufacturer in a vertical merger.
a. increase by area A + B.
b. increase by area E + H.
c. decrease by area B + D + G.
d. remain equal to area A + B + C + D + F + G.
When the productivity of capital decreases, _____
a. the demand curve for capital shifts to the right b. the price of the good in which capital is used as a resource increases c. the supply curve for capital shifts to the left d. the equilibrium rental rate of capital decreases
What is the total utility of five cans of soda?Cans of SodaTotal utilityMarginal utility114 2 12336 444 5 6
A. 50 B. 6 C. 44 D. 8
When loans are repaid at commercial banks:
A. Money is created B. Money is destroyed C. The assets of commercial banks increase D. The net worth of commercial banks increases