Assuming pizza and hamburgers are substitutes, when the price of pizza increases, what must always happen?
A. Total revenue received by pizza sellers increases.
B. Total revenue received by hamburger sellers increases.
C. Total revenue received by hamburger sellers decreases.
D. Total revenue received by pizza sellers decreases.
Answer: B
You might also like to view...
Refer to the table below. Recall that the bidders only know their own private value of the item and they do not know the other participants' private values. Further, assume each participant will submit bids using their optimal strategy. If the participants are bidding in a Dutch auction, Bidder ________ wins the auction and pays ________.
The table above lists the independent private values of five participants in an auction. Each of the bidders only knows their own value and does not know the private values of the other participants.
A) #3; a value less than $10 million and greater than $9.5 million
B) #5; a value less than $10 million and greater than $9.5 million
C) #5; 9.5 million
D) #3; $10 million
Which of the following is the most accurate definition of a worker's "marginal revenue product"?
a. the change in the firm's profits as the result of hiring an additional worker b. the change in the firm's total revenue as the result of hiring an additional worker c. the change in the firm's output as the result of hiring an additional worker d. the change in the firm's cost as the result of hiring an additional worker
The most desired goods or services that are given up when a choice is made are called the
A. Rationing device. B. Utility cost. C. Economic profit. D. Opportunity cost.
A low concentration ratio suggests
A) a high degree of monopolization. B) a high degree of competition. C) that wages are a low share of costs. D) that wages are a high share of costs.