A firm with market power in pricing faces a
A. downward-sloping demand curve.
B. downward-sloping supply curve.
C. supply curve parallel to the horizontal axis.
D. flat demand curve.
Answer: A
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The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points B and C equals
A) 16. B) 8. C) 4. D) 2. E) 14.
International trade has the potential to ____ the availability of goods and services to ____.
A. increase; those nations who export more than they import B. increase; nations that have an absolute advantage in the production of a good or service C. increase; all nations D. decrease; all nations
With marginal cost pricing
A. there cannot be any short-run economic profit. B. all opportunity costs will be covered in the short run. C. the price charged is equal to the opportunity cost to society of producing one more unit of the good. D. marginal benefits are usually less than marginal cost.
Salaries of NFL quarterbacks, like Tom Brady, are
A. too high. B. the result of perfectly competitive markets. C. related to the additional revenues team owners expect to enjoy as a result of having them on the team roster. D. All of the above are correct.