"The water that comes out of your faucets at home is not supplied by a competitive firm.". Explain why this statement is correct
In order to be a competitive firm, the supplier of your water would have to be one of many sellers of water. In fact, it is likely that there is only one firm (or governmental unit) that supplies water to homes in your community.
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The ratio of the percentage change in quantity demanded to the percentage change in income is known as the cross elasticity of demand.
Answer the following statement true (T) or false (F)
Under an emission tax, polluters ________ what price they have to pay to pollute, __________________________ how much pollution will be generated.
A. know; and government knows B. don't know; and government doesn't know C. know; but government doesn't know D. don't know; but government knows
The price elasticity of demand is calculated by:
A. the change in price divided by the change in quantity demanded. B. the change in quantity demanded divided by the change in price. C. the percentage change in price divided by the percentage change in quantity demanded. D. the percentage change in quantity demanded divided by the percentage change in price.
At an output of zero, ________ is zero.
A. total variable cost B. total cost C. total fixed cost D. All of the above are correct.