What would you expect the cross price elasticity of iPods and online music downloads? Explain your answer
What will be an ideal response?
The cross price elasticity of iPods and music downloads should be negative because they are likely to be complements. Thus, an increase in the price of iPods will decrease the demand for music downloads.
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Sandra's Sweaters' production function is shown in the above table. Sandra rents three knitting machines for $30 a day each and hires workers at a wage rate of $40 a day
If the rental rate of capital rises to $50 per machine a day, Sandra's ________ curve shifts upward. A) average variable cost B) total variable cost C) average fixed cost D) marginal cost
A franchise is
A) a firm that buys and operates a brand name business in a new market. B) a branch of a national company. C) a firm with the legal right to sell a good or service in a particular area. D) a firm with no competitors.