Aluminum cannot be produced without bauxite. Hence, the price elasticity of demand for bauxite by aluminum manufacturers will be
A) perfectly elastic.
B) elastic.
C) inelastic.
D) unitary elastic.
C
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Why do economists tend to create models in diagrammatic form?
A. Diagrams distort reality, and theory is an attempt to avoid reality. B. Because they are unable to construct physical models of their theories. C. Economic reality can only be represented in diagrams. D. Most economists like to draw as much as possible. E. All of these responses are correct.
In the long run, input demand becomes more
A) elastic. B) inelastic. C) unit-elastic. D) cost efficient.
As a group, oligopolists would always earn the highest profit if they would
a. produce the competitive quantity of output. b. produce more than the competitive quantity of output. c. charge the same price that a monopolist would charge if the market were a monopoly. d. operate according to their own individual self-interests.
Even though the average income in the United States has continued to grow, the poverty rate has increased to over 20% since the early 1970s
a. True b. False Indicate whether the statement is true or false