If at the current level of product-specific service, consumers' value at $12 and the cost of retailers to provide the services is $12, which of the following is true?
A) the profit-maximizing level of profit-maximizing services is exactly double the current level
B) the profit-maximizing level of profit-maximizing services is greater than the current level
C) the profit-maximizing level of profit-maximizing services is less than the current level
D) the profit-maximizing amount of product-specific services is being offered.
D) the profit-maximizing amount of product-specific services is being offered.
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The figure above shows the market for airline tickets. In early 2008 firms negotiated lower wages with their workers. This change is shown in the figure as a shift from
A) D0 to D1. B) D1 to D0. C) S0 to S1. D) S1 to S0.
When the government considers whether it should change its spending in response to a recession, it must weigh the tradeoff between ____________ and ________________.
A. faster recovery time; inflation B. less output; higher prices C. more output; lower prices D. faster recovery time; lower prices
Economic rent is earnings in excess of what?
a. opportunity cost b. total costs c. taxes d. hidden costs
According to liquidity preference theory, a decrease in the price level causes the interest rate to
a. increase, which increases the quantity of goods and services demanded. b. increase, which decreases the quantity of goods and services demanded. c. decrease, which increases the quantity of goods and services demanded. d. decrease, which decreases the quantity of goods and services demanded.