Suppose the quantity demanded of ice cream cones increases from 400 to 425 cones a day when the price is reduced from $1.50 to $1.25. In this situation, the elasticity of demand, calculated using the average method, is
A) 3.
B) 1.
C) 0.33.
D) 1.33.
Answer: C
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In terms of capabilities, education can be seen as:
A. a factor that reduces income inequality in countries. B. something that requires a lot of funding, but produces very little return. C. a feature of more democratic regimes. D. contributing to better family planning.
Consider an unregulated monopoly in Figure 13.2. Suppose that a second firm enters the market. As a result, the demand curve facing each firm lies entirely below the long-run average cost curve. Because having two firms in the industry makes both firms unprofitable, then the industry is classified as:
A. a natural monopoly. B. a duopoly. C. a monopolistic competitor. D. a pure competitor.
When using pollution charges to improve efficiency in a market with an external cost, regulators attempt to set the pollution charge equal to the
A) marginal social cost of production. B) marginal external cost of production. C) marginal private cost of production. D) marginal private benefit of consumption. E) marginal external benefit minus the marginal external cost.
The heteroskedasticity-robust _____ is also called the heteroskedastcity-robust Wald statistic.
A. t statistic B. F statistic C. LM statistic D. z statistic