You own two different energy drink brands with similar elasticities: "Blue Cow" and "600 minute energy.". If you reduce the price on "Blue Cow", you can only increase your total sales if
a. Prices for "600 minute energy" are increased
b. Prices for "600 minute energy" are reduced
c. Prices for "600 minute energy" stay constant
d. None of the above
b
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With respect to diffusion of responsibility,
A) the larger the group, the more likely that any one individual will act. B) the larger the group, the less likely that any one individual will act. C) the size of the group has no bearing on the likelihood of any one individual to act. D) individuals are likely to take no action only if the group of individuals is small.
The word "fiat" is
A) used to describe today's money because it is money set by law. B) used to describe money from when Kings ruled by decree or fiat. C) the term used to define the concept of barter. D) another word to mean the "double coincidence of wants." E) Latin for "backed by gold."
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. What happens if Max receives a $100 cash grant to buy either meat or chicken?
A) Max will double his consumption of both meats. B) Max will spend it all on burger. Because of its lower price, he can buy more of it. C) Max will take advantage of the gift by buying all chicken because it is the more expensive meat. D) There is not enough information to answer the question.
The more complicated a production process is,
a. the lower the transactions cost of using markets b. the lower the cost of production c. the more likely the market will be used to organize production d. the more likely that transaction costs decrease through centralized control of production e. the more likely that transaction costs decrease through use of markets