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Questions and Answers
In a perfectly competitive market, individual firms have the power to influence the market price.
In a perfectly competitive market, individual firms have the power to influence the market price.
False (B)
A decrease in the price of a complement for a good will lead to a decrease in the demand for that good.
A decrease in the price of a complement for a good will lead to a decrease in the demand for that good.
False (B)
If the cross-price elasticity of demand between Good A and Good B is -2, then the goods are substitutes.
If the cross-price elasticity of demand between Good A and Good B is -2, then the goods are substitutes.
False (B)
The law of diminishing returns states that as you add variable resources to fixed resources, the marginal product of the variable resource will eventually become negative.
The law of diminishing returns states that as you add variable resources to fixed resources, the marginal product of the variable resource will eventually become negative.
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If a firm is experiencing economies of scale, its long-run average total cost curve is upward sloping.
If a firm is experiencing economies of scale, its long-run average total cost curve is upward sloping.
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