Figure 11-8
Given the average cost curve shown in Figure 11-8 for dry cleaning, where Q1 is the quantity demanded in a small town, and Q2 for a larger town, you would expect dry cleaning to be a monopoly
a.
in a small town, but not a large one.
b.
in both large and small towns.
c.
in a large town, but not a small one.
d.
only if the process is patented.
a
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________ is likely to result in an increase in the total efficiency units of labor in an economy
A) A decrease in the capital-labor ratio in the economy B) An increase in the unemployment rate in the economy C) A decrease in the labor force participation rate in the economy D) An increase in the productivity of each worker in the country
The price elasticity of demand is typically negative because
A. as price decreases, quantity demanded decreases. B. as price decreases, quantity demanded increases. C. as price decreases, demand decreases. as price decreases, demand increases. D. consumers rarely respond to a change in price.