Suppose that each serving of Mac & Cheese costs $0.50 to make no matter how many servings are produced. This means that the price elasticity of supply for Mac & Cheese is ________ and the supply curve is ________.
A. infinite; perfectly elastic
B. zero; perfectly elastic
C. infinite; perfectly inelastic
D. one; perfectly inelastic
Answer: A
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A. producing differentiated products. B. producing where price equals marginal cost. C. making economic profits in the long run. D. producing at optimal productive efficiency.
The reduction or covering of a foreign exchange risk is called
A) hedging. B) speculation. C) intervention. D) arbitrage.
Southern slave owners were not rational people and did not strive to maximize profits through the use of the slave system of production
Indicate whether the statement is true or false
In the long run, both monopolistic competition and perfect competition result in:
a. a wide variety of brand-name choices for consumers. b. an efficient allocation of resources. c. zero economic profit for firms. d. excess capacity.