The key difference between supply in the short run and supply in the long run is that we assume that firms:
A. will have a total supply that is constant in the long run.
B. are able to enter and exit the market in the long run.
C. are able to enter and exit the market in the short run.
D. will not collude in the short run.
Answer: B
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Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________
A) relative price; 2 basketballs per football B) relative price; 1/2 basketball per football C) opportunity cost; $20.00 D) opportunity cost; $10.00
The term "opportunity cost" points out that
A) there may be such a thing as a free lunch. B) not all individuals will make the most of life's opportunities because some will fail to achieve their goals. C) executives do not always recognize opportunities for profit as quickly as they should. D) any decision regarding the use of a resource involves a costly choice.
A linear downward-sloping demand curve has price elasticities (in absolute values) that
A) remain constant along the demand curve. B) decrease as price decreases. C) increase as price decreases. D) are greater than or equal to 1.
The demand for French Roast coffee is likely to be
a. elastic. b. inelastic. c. unit elastic. d. perfectly inelastic.