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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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.
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.