Hyundai is a large South Korean company that produces finished steel products. Hyundai plans to buy raw steel from U.S. Steel. As a result, the demand curve for U.S. Dollars ________ and the demand curve for South Korean Won ________
A) shifts rightward; does not shift
B) shifts rightward; shifts leftward
C) does not shift; shifts leftward
D) shifts leftward; shifts rightward
A
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Much of the research on the minimum efficient scale suggests that for many firms, economies of scale are:
A) relatively modest. B) nonexistent. C) substantial. D) heavily dependent on the minimum efficient scale of the firm's production process.
What are the key steps for analyzing Demand functions based on Regression results?
What will be an ideal response?
Price discrimination can benefit some consumers when
a. the additional profit realized by the monopolist equals the cost incurred b. the government comes in to regulate the market c. competitors are also able to price discriminate d. those consumers pay a price lower than the price they would have to pay a single-price monopolist e. those consumers pay a price higher than the price they would have to pay a single-price monopolist
Harriet enjoys watching both American Idol and Desperate Housewives on television. Her preferences correspond to the utility function U(A,D) = 2A + 4?D, where A stands for the number of hours she watches American Idol and D is the number of hours she watches Desperate Housewives.
a. How would Harriet rank the following alternatives: 4 hours of American Idol and 2 hours of Desperate Housewives, 2 hours of American Idol and 4 hours of Desperate Housewives and 3 hours of American Idol and 3 hours of Desperate Housewives? b. Suppose that one week, Desperate Housewives is not shown, but there is a two-hour American Idol special (instead of the usual one-hour program). Is Harriet better off or worse off? Explain. c. Would Harriet's preferences change if her utility function was expressed as U(A,D) = 2A + 4?D+6? Why or why not? What will be an ideal response?