Sandy's current consumer surplus for candy is 20. Candy is an inferior good for her. When her income increases and the price of candy remains unchanged, her consumer surplus will
A) increase.
B) decrease.
C) remain the same.
D) Not enough information.
B
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In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of $9,200, then over this range of output there are
A) constant economies of scale. B) constant returns to scale. C) diseconomies of scale. D) economies of scale. E) constant diseconomies of scale.
According to Edward Denison, the major source of labor productivity is
a. improvements in labor quality. b. economies of scale. c. the changing composition of the labor force. d. technological progress. e. education per worker.
To reach an economically efficient output level, the size of an excise tax imposed on a firm generating a negative externality should be
a. the firm's marginal cost. b. the social marginal cost. c. the difference between the social marginal cost and the firm's marginal cost. d. the sum of the social marginal cost and the firm's marginal cost.
Segmentation involves classifying customers based on their importance. Which tools are used to classify customers?
a. ABC classification (Pareto's Law) b. Customer profitability analysis c. Balanced investment strategy d. Customer loyalty program e. None of the above f. Only A and B