Suppose that the value of the short-run absolute elasticity of demand for a good is 0.9. Then, we know the long-run absolute price elasticity of demand will be

Refer to the table above. What is the average variable cost of producing 86 units of the good?

A) $30 B) $0.35 C) $2.1 D) $10

An indication that Insurance companies anticipate adverse selection is

a. they do not require a deductible b. they do not classify clients into different risk types according to their claim history c. they classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment