Refer to Figure 7.1. Which of the following are the combinations of movies and T-shirts that would exhaust the budget?
A. A and C
B. C and E
C. B and G
D. A and B
Answer: B
You might also like to view...
In the long-run, a firm in monopolistic competition produces an amount of output that sets
A) P > ATC and MR = MC. B) P > ATC and MR > MC. C) P = ATC and MR = MC. D) P = ATC and MR > MC.
In any given market, prices are determined by
A) specialization of labor. B) transactions costs. C) supply and demand. D) comparative advantage.
The target price approach to the farm problem distorted the market less than the support price approach because the target price
a. does not allow the market to clear, whereas the support price does b. increases farm incomes by creating a shortage, whereas the support price creates a surplus c. permits the market to clear, whereas the support price does not d. is set equal to the equilibrium price e. is independent of market conditions and thus gives farmers a steady income
A common characteristic in oligopolistic markets is
a. consideration of rivals' reactions. b. standardized products. c. high profits. d. unused capacity.