Which best describes the relationship between the cost of acquiring information and return?
A) A high return must compensate for a high cost of acquiring information.
B) A higher cost of information corresponds with a low return.
C) A low cost of acquiring information corresponds with a high return.
D) A higher return results in a lower cost of acquiring information.
A
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The cross elasticity of demand is calculated as the percentage change in the
A) quantity demanded of one good divided by the percentage change in the price of another good B) price of one good divided by the percentage change in the quantity demanded of another good. C) quantity demanded of one good divided by the percentage change in the quantity demanded of another good. D) price of one good divided by the percentage change in the price of another good.
Caroline is an artist. She purchases canvas, paints, brushes, and accessories for $75. She sells one of her original paintings to an art gallery for $1,500, which, in turn, sells it to an art lover for $4,500. How much value does the gallery add?
A) $1,425 B) $1,500 C) $3,000 D) $4,500
Which of the following are theories of the BOT?
A) monetary approach B) absorption approach C) elasticities approach D) Both B and C
Monopolies may earn zero economic profit because of
a. zero marginal cost b. barriers to entry c. patents and copyright laws d. economies of scale e. government price regulation