Marginal cost is the additional cost to a firm of producing one more unit of a good or service.
Indicate whether the statement is true or false
Ques. 2Jonah lives in a small town where there is only one Mexican restaurant. Which of the following is likely to be true about the price elasticity of demand for meals at the Mexican restaurant?
A) Demand is likely to be perfectly elastic. B) Demand is likely to be relatively elastic.
C) Demand is likely to be relatively inelastic. D) Demand is likely to be perfectly inelastic.
Ques. 3Although there are many examples of game theory in the real world, how well do you think specifics like payoff matrices, Nash equilibrium, and dominant strategies translate to reality?
What will be an ideal response?
Ques. 4Define the exchange rate.
What will be an ideal response?
Ques. 5When there is a negative externality, the competitive output is greater than the economically efficient output level.
Indicate whether the statement is true or false
Ques. 6What two conditions are met when a consumer is maximizing utility?
What will be an ideal response?
Ques. 7Describe three features of monopolistic competition that differentiate it from monopoly.
What will be an ideal response?
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