Suppose the price of tomato sauce falls. In the market for pizza, in which tomato sauce of a popular ingredient, one would expect that
A. the supply of pizza would increase, and the price would fall.
B. the demand for pizza would decrease, and price would fall.
C. the demand for pizza would increase, and the price would increase.
D. the supply of pizza would decrease, and price would rise.
Answer: A
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The purchase of Michelin Tire Company by General Motors is an example of a vertical merger
a. True b. False Indicate whether the statement is true or false
Mika borrows $100,000 to start up her own beauty shop. She pays 5 percent interest on her loan. In order to account for all costs of her business, Mika must not forget:
A. the explicit cost of $5,000. B. the implicit cost of $5,000. C. the explicit cost of $105,000. D. the implicit cost of $100,000.
A monopolist sets the market price for its product.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. 
Figure 8.4 Refer to Figure 8.4. Micro Oven's average fixed costs of producing twelve units of output are
A. $41.67. B. $25.00 C. $16.67. D. indeterminate from this information.