If products C and D are close substitutes, an increase in the price of C will
A. tend to cause the price of D to decrease.
B. shift the demand curve for D to the right.
C. shift the demand curves for both products to the right.
D. shift the demand curve for C to the left and the demand curve for D to the right.
Answer: B
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In an oligopolistic market,:
A. the larger the number of firms and the more elastic the demand, the greater the markup. B. the larger the number of firms and the less elastic the demand, the greater the markup. C. the smaller the number of firms and the less elastic the demand, the greater the markup. D. the smaller the number of firms and the more elastic the demand, the greater the markup.
Shortages prevail in the market for organ transplants at zero price
a. True b. False Indicate whether the statement is true or false
Which of the following is true about average fixed cost?
A. Average fixed cost has a U-shape, and marginal cost crosses average fixed cost at its minimum point. B. Average fixed cost does not vary as output increases. C. Average fixed cost is the difference between marginal cost and average total cost. D. Average fixed cost is total fixed cost divided by the quantity of output produced, and it declines steadily as output increases.
Which of the following would be most likely to earn an AAA rating from Standard & Poor's?
A. A 10-year bond issued by Canada B. A 10-year bond issued by a state or municipality C. Shares of stock in Coca-Cola D. A bond issue by a new vegetarian fast-food chain