In general, the greater the elasticity, the:
A. smaller the responsiveness of price to changes in quantity.
B. smaller the responsiveness of quantity to changes in price.
C. larger the responsiveness of price to changes in quantity.
D. larger the responsiveness of quantity to changes in price.
Answer:
The principle of increasing marginal opportunity cost holds in which of the following
cases?
A. All inputs are equally adaptable to the production of all goods.
B. The production possibility curve is a downward-sloping straight line.
C. Some inputs are better for producing particular goods.
D. Each input can be used to produce only one good.
Answer:
A perfectly competitive firm’s marginal revenue is:
A. less than the selling price.
B. greater than the selling price.
C. equal to the selling price.
D. sometimes below and sometimes above the selling price.
Answer:
Refer to the graph shown. The free market equilibrium in the graph is at a price and
quantity of:
A. $5 and 2,600 units.
B. $3.50 and 2,000 units.
C. $2.50 and 2,600 units.
D. $3.50 and 3,100 units.
Answer: