The cross elasticity of demand for blank DVDs and DVD burners is likely to be
A) positive because they are substitutes.
B) positive because they are complements.
C) negative because they are substitutes.
D) negative because they are complements.
E) negative because with the advent of digital cameras, film and film cameras are inferior goods.
D
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When a firm's earnings rise, its stock prices will tend to fall
a. True b. False Indicate whether the statement is true or false
If leisure is drawn on the horizontal axis and labor is drawn on the vertical axis, then a person who attaches more importance to leisure than to labor will have indifference curves that:
A. tend to be steeper. B. tend to be flatter. C. will be positively-sloped. D. will be L-shaped.
Which of the following is LEAST likely to be a reason for the decline in U.S. union membership?
A) declines in manufacturing employment B) increases in the work force of the public sector C) deregulation of transportation industries D) increasingly more immigrant workers to fill unskilled job positions
Suppose a perfectly competitive firm can produce 20,000 bushels of corn a year at an output at which marginal cost equals marginal revenue. The market price of corn per bushel is $2.00. The firm's total costs per year are $50,000 and fixed costs per year are $25,000. In the short run, this firm should
A. shut down. B. produce 40,000 bushels to try to increase economic profit. C. produce 20,000 bushels of corn because, although they are losing money, they are losing less than if they shut down. D. continue producing until the price of corn increases.