The longer the time period under study,
a. the more elastic is the price elasticity of demand.
b. the less sensitive consumers will be to price changes.
c. the less adjustment consumers will make to price changes.
d. the more inelastic is the price elasticity of demand.
e. the more likely any given price cut will result in a smaller reaction by the consumer.
a
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Jimmy's utility of wealth schedule is given in the table above. Jimmy has a job with a one-third chance of earning $200 and a two-thirds chance of earnings $400. Jimmy's cost of risk is
A) $0. B) $16.67. C) $33.33. D) Jimmy's cost of risk cannot be determined without more information.
Value pricing reflects
A) product differentiation. B) competitive pricing strategies. C) marginal cost pricing. D) add-on price strategies.
A single-plant firm trying to select the rate of output consistent with an overall plant size that yields the minimum efficient scale will choose a rate of output for which
A. the short-run marginal cost curve crosses the short-run average total cost curve at that rate of output. B. total fixed cots are minimized at that rate of output. C. the long-run marginal cost curve crosses the long-run average fixed cost curve at that rate of output. D. long-run average total cost is lowest at that rate of output.
As a percentage of government receipts, corporate income taxes are larger than personal income taxes and Social Security taxes combined.
Answer the following statement true (T) or false (F)