Luis wonders why commercials appear more frequently at the end of a TV movie than at the beginning. Carol says that this pattern can be explained by the
a. share of the viewer's budget spent on TV watching
b. length of the adjustment period
c. cost of supplying additional minutes of the movie
d. high elasticity of demand for watching the end of a TV movie
e. availability of substitutes
E
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What is the relationship between marginal cost and fixed cost?
What will be an ideal response?
Refer to Figure 5-7. Which of the following statements is true?
A) The optimal quantity of pollution reduction is QB. B) The optimal quantity of pollution reduction is QE. C) At QE the benefits of reducing pollution outweigh the cost of pollution reduction. D) At QB society is under allocating resources to pollution reduction.
Which of the following is NOT a function of rental prices?
A) to stimulate the construction of new housing B) to ration the existing housing stock C) to provide housing to individuals below market value D) to allocate existing scarce housing among different people
Exhibit 14-1 Aggregate supply curve
?
In Exhibit 14-1, higher price levels allow producers to earn higher profits, stimulating production and employment in:
A. the segment labeled ab. B. the segment labeled bc. C. the segment labeled cd. D. both segment bc and segment cd.