Refer to the graph above. Suppose that its shows the S and D graphs in a market where usage of the product generates a lot of external benefits. In this case, the government should use its coercive power to make:
A. The supply curve shift to the left
B. The supply curve shift to the right
C. The demand curve shift to the left
D. The demand curve shift to the right
D. The demand curve shift to the right
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Microsoft raises the price of its Office software by 10 percent. As a result, the quantity of personal computers demanded at the current price decreases by 5 percent
What is the cross elasticity of demand for personal computers with respect to the price of Microsoft Office software? A) -2.0 B) -0.5 C) 0.5 D) 2.0
In a court decision in June 2001, the Federal District Count of Appeals in Washington, D.C. found that Microsoft had violated the
A) Clayton Act. B) Robinson-Patman Act. C) Sherman Act. D) Celler-Kefauver Act.
Assume that the ratio of excess reserves to demand deposits is 0, and the ratio of currency to demand deposits is .2. If the reserve requirement on demand deposits is .3 and there is no reserve requirement on savings accounts, the M1 multiplier is
A) 5.5. B) 4. C) 2.5. D) 2.4.
Which of the following best describes total fixed cost?
a. Total fixed cost divided by the quantity of output produced. b. Total variable cost divided by the quantity of output produced. c. Total cost divided by the quantity of output produced. d. The change in total cost when one additional unit of output is produced. e. Costs that do not vary as output varies.