Richard's indifference curve for two goods (bread and butter) is L-shaped, whereas Kate's indifference curve for the same two goods is convex. We can infer that _____
a. Kate considers bread and butter to be perfect substitutes
b. Kate considers bread and butter to be perfect complements
c. Richard considers bread and butter to be perfect substitutes
d. Richard considers bread and butter to be perfect complements
d
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A vaccination shot provides a(n):
a. beneficial opportunity cost. b. positive externality. c. out-resourcing benefit. d. managed-care opportunity benefit.
Encouraging firms to invest in research and development and individuals to engage in creative endeavors such as writing novels is one justification for
a. resource monopolies. b. natural monopolies. c. government-created monopolies. d. breaking up monopolies into smaller firms.
Suppose your firm is operating in a perfectly competitive market, and that the minimum average variable cost of producing your good is $13. If the price of the good is $15, your firm should:
A. supply the amount of the good where the marginal cost of production is equal to $15. B. not produce anything since the price is above the minimum of average variable cost. C. not consider price when determining the amount to sell. D. not do any of these.
Refer to Figure 8.11. Which of the following statements is true?
A. Both Fred and Barney have a dominant strategy. B. Neither Fred nor Barney has a dominant strategy. C. Fred has a dominant strategy but Barney does not. D. Barney has a dominant strategy but Fred does not.