Consumption is most likely to respond one-for-one with changes in current income when
A) the change in current income results from a one-time bonus.
B) people believe the change in their current income is temporary.
C) people are able to borrow as much as they wish, as long as they pay it back.
D) the change in current income is caused by the business cycle.
E) none of the above
E
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If additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be linear
Indicate whether the statement is true or false
Refer to the above figure. The profit maximizing price for a monopolistic competitor is
A) P1. B) P2. C) P3. D) P4.
The fundamental source of monopoly power is
a. barriers to entry. b. profit. c. decreasing average total cost. d. a product without close substitutes.
Refer to the accompanying table. Pat's opportunity cost of making a pizza is delivering: Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015
A. 2 pizzas. B. 3/2 of a pizza. C. 3 pizzas. D. 2/3 of a pizza.