The price elasticity of supply measures
A) the responsiveness of quantity demanded to a change in price.
B) the responsiveness of quantity supplied to a change in price.
C) the change in supply due to a change in input prices.
D) the change in price due to a change in quantity supplied.
B
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With a unanimity decision-making rule, external costs are _____
a. zero b. indeterminate c. high d. minimized
A company which charges a lower price than may be indicated by economic analysis to gain a foothold in the market is practicing
A) price skimming. B) psychological pricing. C) penetration pricing. D) prestige pricing.
Which of the following statements is the most important reason that medical care markets do not fit the competitive model very well?
a. Consumers have a difficult time evaluating the quality of care. b. There are so many not-for-profit providers in the market. c. There are too many low-income consumers desiring to purchase medical care. d. Consumers have a difficult time determining prices before the transaction is completed. e. Providers find it easy to transfer their resources to other uses.
Which one of these firms would be a monopolistic competitor?
A. AT&T B. A local phone company C. A Tex-Mex restaurant in San Antonio, Texas D. The only used car dealer within 300 miles of Livingston, Montana