Rubin's Classic Book Shop has been advised that raising prices would lead to higher revenues because his product demand is elastic. The consultant giving this advice should be fired for bad information
Indicate whether the statement is true or false
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Above the shutdown point, a competitive firm's supply curve coincides with its:
a. marginal cost curve. b. average total cost curve. c. marginal revenue curve. d. average variable cost curve.
If union-sponsored advertisements for a particular product succeed in increasing the demand for that product, the:
A. demand for the union-labor used to produce the product will increase. B. demand for the union-labor used to produce the product will decrease. C. marginal factor cost of union-labor will increase. D. marginal factor cost of union-labor will decrease.
Which of the following is a correct statement about a Nash equilibrium in a two-player game?
A. A Nash equilibrium is always unique in real-world problems. B. The joint payoffs of the two players are highest compared to other strategy pairs. C. Given another player's strategy, no player can improve her welfare by unilaterally changing her strategy. D. All of the statements associated with this question are correct.
The price of good X is $5 and the price of good Y is $15. If the marginal utility of good X is 20 then the marginal utility of good Y must be ________ to have an optimum combination of goods purchased
A) 4 B) 20 C) 60 D) 80