A monopolistic firm will shut down if
A) P < ATC for every level of output.
B) P > ATC for every level of output.
C) P > AVC for every level of output.
D) P < AVC for every level of output.
D
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If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio books, the income elasticity of demand is
A) -0.67. B) 0.67. C) 1.5. D) 2.
Which of the following accounts for approximately three-fourths of all welfare spending?
a. the school lunch program b. the earned income tax credit c. unemployment compensation and workers' compensation combined d. "in-kind" transfers e. cash transfers
The purpose of a crop limitation program is to
a. increase the demand for farm goods b. decrease the demand for farm goods c. increase the supply of farm goods d. decrease the supply of farm goods e. reduce the excess demand resulting from a price ceiling program
Suppose that the price of New York style slices of pizza is $4 each. Matthew is willing to pay $6 for the first slice, James is willing to pay $5 for the second slice, Jessica is willing to pay $4 for the third slice, and Tammy is willing to pay $3 for the fourth slice. Which consumer will not buy pizza slices?
A. Matthew B. James C. Jessica D. Tammy