Why is market definition important for economic decision making?
A. Government regulators are interested in knowing the effect of mergers and acquisitions on competition and prices in a particular market.
B A firm will define its market in order to maximize revenue.
C. A firm is interested in knowing its actual and potential competitors.
D. both A and C
E. both A and B
D. both A and C
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Which of the following mathematical expressions represents the equation of a straight line with a slope of zero at all points on a graph with Y on the vertical axis and X on the horizontal axis?
A. Y = a + X B. X = bY C. X = a D. Y = a
Which of the following statements about positive economic analysis is true?
A) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. B) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. C) Unlike positive economic analysis, normative economic analysis can be tested. D) There is much more disagreement among economists over positive economic analysis than over normative economic analysis.
Marginal product crosses the horizontal axis (is equal to zero) at the point where
A) average product is maximized. B) total product is maximized. C) diminishing returns set in. D) output per worker reaches a maximum. E) All of the above are true.
A production possibility graph slopes down because of:
A. the law of increasing costs. B. scarcity. C. inefficiency. D. unemployment.