Starbucks sells coffee in both New York City and in rural upstate New York. The price of coffee is higher in New York City
This fact means that the value of marginal product of land is ________ in New York City and so Starbucks is willing to pay a ________ rent in New York City. A) lower; lower
B) higher; lower
C) lower; higher
D) higher; higher
D
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A monopolistically competitive firm
A. tries to differentiate its product from competitors’ products. B. faces a perfectly elastic demand curve for its product. C. has more monopoly power in the long run than does a perfectly competitive firm. D. is always a retail establishment.
Capital deepening is the only mechanism by which economies can grow
Indicate whether the statement is true or false
Most macroeconomic variables that measure some type of income, spending, or production fluctuate very separately from each other.
a. true b. false
According to the general utility formula, the marginal utility of product A divided by the ____________ is equal to the marginal utility of product B divided by the _____________.
Fill in the blank(s) with the appropriate word(s).