The accompanying graph depicts demand.
The price elasticity of demand at point A is:
A. 2/5.
B. 5/8.
C. 8/5.
D. 5/2.
Answer: D
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Suppose it costs a farmer $1.00 to produce 1 unit of corn, $2.10 to produce 2 units of corn, and $3.30 to produce 3 units of corn. What's the marginal cost of producing 2 units of corn?
A) 0 B) 10 cents C) $1.10 D) $2.00 E) $2.10
If this year the price level is 135 and last year it was 125, the inflation rate is
A) 8 percent. B) 10 percent. C) 12 percent. D) none of the above.
"The United States should adopt more open trade policies because they historically have caused increased economic growth." This is an example of what kind of statement?
A. Unequivocally true B. Normative C. Positive D. Unequivocally false
Answer the following statements true (T) or false (F)
1. Firms in monopolistic competition sell a similar but differentiated product. 2. 3. 4. 5.