The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point d would be the result of
A) an increase in technology.
B) a decrease in the relative price of a soft drink.
C) an increase in the relative price of a soft drink.
D) an increase in the number of soft drink suppliers.
C
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Refer to Figure 16-3. Suppose Chantal charges all her customers a uniform price of $10 for a haircut. Which of the following statements is true?
A) Chantal is maximizing revenue in market B. B) Chantal is selling more than the profit-maximizing quantity of haircuts in market B. C) Chantal is selling less than the profit-maximizing quantity of haircuts in market B. D) Chantal will earn a greater profit through uniform pricing than if she practices price discriminates.
Consider a market with just one firm. The demand in the market is p = 18 – Q and the firm has a linear cost function C(Q) = 2Q
a. How much output will this firm produce. What will be the profit and consumers surplus? b. Suppose a second firm with the same cost function enters the market and the two firms compete in a Cournot style (simultaneous output choice). What will be the equilibrium price and quantity in the market? What is the total market profit and CS?
In the above table, if the marginal factor cost is $20, how many workers would be hired?
A) 3 B) 4 C) 5 D) 6
. Economists use the percentage change in quantity rather than the absolute change in quantity because:
A. percentage changes are easier to calculate than absolute changes. B. the measured elasticity is the same regardless of the unit of measurement for quantity. C. absolute changes are confusing to convert. D. absolute changes often result in negative numbers.