If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________
A) rises; increases
B) rises; decreases
C) falls; decreases
D) falls; increases
A
You might also like to view...
Entrepreneurs contribute to increased average labor productivity in each of the following ways except by:
A. developing new products. B. introducing new production methods. C. assigning workers to jobs. D. implementing new technological processes.
The optimal bidding strategy in a second-price sealed-bid auction is similar to the optimal bidding strategy in a(n) ________ auction. In both auctions, dominant strategies are at work
A) open-outcry English B) open-outcry Dutch C) first-price sealed-bid D) penny
For a monopoly, the entry of new firms is difficult, but not impossible
Indicate whether the statement is true or false
Diseconomies of scale arise primarily because:
A. the short-run average total cost curve rises when marginal product is increasing. B. of the difficulties involved in managing and coordinating a large business enterprise. C. firms must be large both absolutely and relative to the market to employ the most efficient productive techniques available. D. beyond some point marginal product declines as additional units of a variable resource (labor) are added to a fixed resource (capital).