The demand for Godiva mint chocolates is likely quite elastic because
a. there are many close substitutes.
b. this particular type of chocolate is viewed as a luxury by many chocolate lovers.
c. the market is narrowly defined.
d. All of the above are correct.
d
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What is job rationing and how does it relate to unemployment? What factors can lead to job rationing? Briefly explain these factors
What will be an ideal response?
Assume a firm is a monopoly and enjoys $10 million in profits per year. The firm lobbies to have a moratorium passed by Congress on new firms in its market for the next 25 years
If there is no discount rate, how much would the firm be willing to pay to deter entry? A) $250 million B) $25 million C) $100 million D) $250 billion
Why does the trade-off between consumption goods and capital goods represent a trade-off between the present and the future?
What will be an ideal response?
In order to acquire more of a good we must sacrifice production of another good, because resources are in limited supply. This illustrates the concept of: a. the division of labor. b. ceteris paribus
c. opportunity cost. d. specialization.