question
The firm is earning an accounting profit just equal to what it could be earning in its next best alternative.
answer
When an economist states that a firm is earning zero economic profits, this means that:
question
Demand for his autos is elastic and his total revenue will rise.
answer
Consider the market for automobiles. If a dealer decreases prices by 25 percent and finds he sells 40 percent more cars, then:
question
Substitute
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Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If ay is positive, then good x is a ___________________ for good Y.
question
A decrease in quantity supplied as price adjusts back toward equilibrium.
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If the actual price of a good is above its equilibrium price, we would expect:
question
Price and quantity would both decrease.
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If pleasure boats are normal goods, what do you suppose would happen to equilibrium price and quantity during an economic recession?
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The supply of Florida oranges has decreased, causing their price to increase, and the demand for the substitute (in consumption) California oranges to increase.
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"The winds of the recent hurricanes in Florida are bringing financial gain to California citrus growers. Because of the extensive damage to the Florida citrus crop, California citrus products are commanding their highest prices ever." What best explains this quotation?
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Horizontal
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A perfectly elastic own price elasticity of demand corresponds to a demand curve that is __________________.
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Elastic
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When marginal revenue is positive, demand is _________________.
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Increase; Increase
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Suppose there is a decrease in the fee to play golf at all area courses. We would expect that as a result that the equilibrium price of golf balls would ___________ and equilibrium quantity of golf balls would ___________.
question
5, decrease
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Suppose that your firm's research department has estimated the own price elasticity of demand for toys to be -1/2. If you decrease prices by 10 percent, you should predict that your quantity demanded will increase by _______________% and your total revenues will therefore _______________(increase, decrease, or stay the same).
question
b. the tastes of households concerning corn
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The position of the industry supply curve for corn depends upon all of the following except:
a. the state of technology in corn production.
b.the tastes of households concerning corn.
c.the costs of factors of production for corn.
d.the prices of other farm crops.
a. the state of technology in corn production.
b.the tastes of households concerning corn.
c.the costs of factors of production for corn.
d.the prices of other farm crops.
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Average total cost curve and average variable cost curve.
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Which curve(s) does the marginal cost curve intersect at the (their) minimum point?
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Greater
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If average product is increasing, marginal product is _______________ than the average product.
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Either increasing or decreasing with output.
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When the marginal cost curve is below an average cost curve, marginal cost is:
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The mayor would be correct if demand were price inelastic; the city manager would be correct if demand were price elastic.
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A city wants to raise revenues to build a new municipal swimming pool next year. The mayor suggests that the city raise the price of admission to the current municipal pools this year to raise revenues. The city manager suggests that the city lower the price of admission to raise revenues. Who is correct?
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Always becomes larger
answer
When we move upward and to the left along a linear, downward-sloping demand curve, price elasticity of demand:
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Diseconomies of scale
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A firm has a long run total cost function of C(Q) = 10Q2. The firm experiences:
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Possibly economies of scope but definitely not cost complementarity.
answer
A firm can produce two products with the cost function C(Q1, Q2) = 10 + 5Q1 + 5Q2 + 0.2Q1Q2. The firm enjoys:
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