The cross-price elasticity of demand refers to:
A. the substitution of one good for another as the prices of two goods change.
B. a change in the demanded for two goods, following a change in the price of one good.
C. the value of price elasticity at which supply crosses demand.
D. the percentage change in the quantity demanded of one good resulting from a 1-percent increase in the price of another good.
D. the percentage change in the quantity demanded of one good resulting from a 1-percent increase in the price of another good.
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The change in the total output of a firm associated with using one more unit of an input is referred to as the:
A) marginal product of the input. B) total product. C) average product of the input. D) variable product of the input.
Perfectly competitive firms are earning economic profits at a market price of $12 and an average total cost of $10. If new firms enter and do not affect the cost for all firms, the market price will ________ until it reaches ________.
A) increase; $16 B) decrease; $10 C) decrease; $11 D) increase; $13