When calculating price elasticity of demand, if the percentage change in price is negative, then the percentage change in quantity demanded is typically:
A. positive.
B. negative.
C. less than one.
D. greater than one.
Answer: A
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Though he has retired as a professional football receiver, Jerry Rice still earns a sizeable annual income from endorsements. His economic rent is so high because
A. football fans tend to spend a substantial amount of money on sports memorabilia. B. there is still a high demand for his star appeal. C. he is a successful coach in the National Football League. D. people do not like NFL players.
The two main characteristics of a public good are
A. nonrivalry and large negative externalities. B. nonrivalry and nonexcludability. C. nonexcludability and production at rising marginal cost. D. production at constant marginal cost and rising demand.
The authors explain that the marginal cost of production does not have to be constant in order to maximize profits under intemporal price discrimination
Which of the following is NOT an example of changing marginal costs under profit-maximizing intertemporal price discrimination? A) Marginal cost increases sharply after the initial marketing stages when the product is sold to the broader market of consumers. B) Marginal costs decline over time due to learning-by-doing. C) Marginal costs decline over time because the producer sells less expensive versions of the product in later stages of marketing (e.g., hard-cover versus paper-cover books). D) Marginal costs decline over time due to economies of scale.
Labor unions
a. are formed to increase members' wages and improve working conditions. b. have represented a declining share of the workforce in the past 50 years. c. have traditionally found it difficult to organize workers in white-collar jobs. d. are characterized by all of the above.