If quantity demanded for rice falls by 4% when price increases 8%, we know that the absolute value of the own-price elasticity of rice is:
a. 2.5
b. 0.5.
c. 2.
d. 0.40.
b
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Marginal cost is
a. the increase in total cost per additional unit of output. b. the increase in total cost per additional unit of input. c. the decrease in total cost from producing one less unit. d. both the increase in total cost per additional unit of output and the decrease in total cost from producing one less unit.
What is one reason firms might lobby to prevent entry into their market?
A) The long run equilibrium might be characterized by P = MC = ATC. B) The long run equilibrium might be characterized by P = MC < ATC. C) The long run equilibrium might be characterized by P > MC = ATC. D) The long run equilibrium might be characterized by P = MC > ATC.
Open-market purchases by the Fed make the money supply
a. increase, which makes the value of money increase. b. increase, which makes the value of money decrease. c. decrease, which makes the value of money decrease. d. decrease, which makes the value of money increase.
A price ceiling is
A. above the initial equilibrium price. B. the maximum legal price that can be charged in a market. C. the minimum legal price that can be charged in a market. D. equal to the initial equilibrium price.