If the price elasticity of supply equals zero, this implies that:
a. suppliers can easily change the quantity supplied of the product as the price of the product changes.
b. the period under consideration is a very long-run time period.
c. the supply curve is perfectly vertical.
d. the percentage change in quantity supplied exceeds the percentage change in product price.
e. the percentage change in quantity supplied equals the percentage change in product price.
c
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The "fair rules" view of fairness is based on
A) income transfers from the rich to the poor. B) property rights and voluntary exchange. C) utilitarianism. D) the big tradeoff. E) allocating resources using majority rule.
A country seeking to maintain internal balance would be concerned
A) only with attaining low levels of unemployment. B) primarily with ensuring that saving is weighted more towards domestic investment than the current account. C) with large fluctuations in output or prices. D) with maintaining an adequate stock of gold reserves. E) with stabilizing employment levels globally.
If Jet Cruises chooses to Ad and Easy Sail then chooses to No Ad, Jet Cruises earns ________ million in net profit and Easy Sail earns ________ million.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $4; $3 B) $2; $4 C) $5; $2 D) $10; $2
What is an example of lower production costs brought about by the use of technology?
What will be an ideal response?