Two goods that are substitutes are:
a. bacon and eggs.
b. camera and film.
c. tennis racket and tennis balls.
d. movie theater tickets and video rentals.
e. coffee and cream.
d
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Suppose that research shows that by buying stocks issued by companies whose names begin with the letter G investors can earn above-normal returns in even-numbered years. From the perspective of the efficient markets hypothesis,
A) this is further evidence that the hypothesis is correct. B) this would be considered a pricing anomaly. C) investors must have insider information on these companies. D) purchasers of these stocks must have been noise traders.
In third-degree price discrimination, markets with a larger price elasticity of demand are ________ responsive to price changes and are charged ________ prices than markets with a smaller price elasticity of demand.
A) less; lower B) more; higher C) more; lower D) less; higher
In this graph, which of the following accurately describes the point where the ATC curves touches the demand curve?
a. The long-term price equals the average total cost at the equilibrium quantity.
b. The short-term price equals the average total cost at the profit quantity.
c. The long-term price equals the marginal cost at the equilibrium quantity.
d. The short-term price equals the marginal total cost at the profit quantity.
Answer the following statement(s) true (T) or false (F)
1. Unsolicited emails are a major positive externality. 2. Negative externalities lead to overproduction. 3. Firms do not shoulder the full cost of their actions if there is a negative externality. 4. Positive externalities result in efficient output levels. 5. Pollution has no benefits.