Reservation price is:
a. the maximum amount a customer would be willing to pay for a unit of output.
b. the minimum price at which a seller would be willing to supply the product.
c. always equal to the marginal cost

If the price of automobiles were to increase substantially, the demand curve for automobiles would most likely

A) shift rightward. B) shift leftward. C) remain unchanged. D) become steeper.

Which of the following best defines the specialization of resources?

a. Workers are compensated as individuals. b. Special resources are needed to produce most goods. c. Each resource is paid for in full. d. Each resource is paid the most if it is specialized. e. Each resource is focused on a limited number of productive activities.