Refer to the figure above. Which of the following statements is true?
A) Ryan has a comparative advantage in the production of Good 1, whereas Tom has a comparative advantage in the production of Good 2.
B) Ryan has a comparative advantage in the production of Good 2, whereas Tom has a comparative advantage in the production of Good 1.
C) Ryan has a comparative advantage in the production of both the goods.
D) Tom has a comparative advantage in the production of both the goods.
A
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Danielle Ocean pays for monthly pool maintenance for her home swimming pool. Last week the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals
How is the market for pool maintenance services affected by this? A) There is a decrease in the demand for pool maintenance services. B) There is a decrease in the quantity of pool maintenance services supplied. C) There is an increase in the supply of pool maintenance services. D) There is a decrease in the supply of pool maintenance services.
You are the manager of a theater. At present the theater charges the same admission price of $8 to all customers, regardless of age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults
You tell your supervisor that your proposal is likely to increase revenue. What must be true about the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.
Responsibility for enforcing the antitrust laws rests:
A. with the Interstate Commerce Commission. B. with both the Department of Justice and the Federal Trade Commission. C. solely with the Federal Trade Commission. D. solely with the Department of Justice.
Olives are used to produce olive oil. If the price of olives increases:
A. the demand for olive oil increases. B. the demand for olive oil decreases. C. the supply of olive oil increases. D. the supply of olive oil decreases.