Answer the following statement true (T) or false (F)
1) Milk prices tend to be stickier than gasoline prices.
2) Prices tend to be stickier in the shorter run than in the longer run.
3) Prices tend to be sticky partially because sellers know that consumers prefer stable prices.
4) Prices tend to be more flexible when there are only two or three rival firms rather than a large
number of sellers in the market.
1) T
2) T
3) T
4) F
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Where does the United States stand as a participant in international trade?
(A) It is the largest exporter and importer. (B) It is the largest exporter but not the largest importer. (C) It is the largest importer but not the largest exporter. (D) It is the second largest importer and exporter.
At an output of 10, ATC is $9 and price is $9. At an output of 11, ATC is $9 and price is $9. MC = MR at an output of 10.5. At that output the firm will
A. take a loss. B. break-even. C. make a profit.