Competitive firms are able to set price above marginal cost when
A) the markup is less than the cost of going to another store.
B) the markup is greater than the cost of going to another store.
C) all consumers have full information.
D) consumers know what other stores are charging.
A
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Which of the following can be considered an injection into an economy?
a. Imports b. Investment c. Aid to foreign countries d. Saving e. Taxes
If the interest rate is below the equilibrium, which of the following occurs in this market?
a. excess supply b. excess quantity supplied c. excess demand d. excess quantity demanded
Susie doesn't buy ice cream this week at the grocery store because she intends to start a diet in a few days. Her behavior is an example of:
A. positive framing. B. the endowment effect. C. status quo bias. D. a commitment device.
When the consumption of a good or service imposes costs to society that are not reflected in the market price of the good
A. it implies that the good is a public good B. a positive externality arises C. it implies that a renewable resource has been used in the production of the good D. a negative externality arises