Exhibit 8-6 Consumption function
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In Exhibit 8-6, when disposable income is equal to zero, saving is equal to:

Suppose that a technological advancement substantially reduces the cost of laser eye surgery. This would cause the equilibrium

A) quantity of laser eye surgery to decrease. B) quantity of laser eye surgery to increase. C) price of technology to increase. D) quantity of technology to decrease.

Which of the following would not limit the extent of a firm's vertical integration?

a. the managers' bounded rationality b. a large minimum efficient scale of producing inputs relative to the firm's input requirements c. the fact that the quality of inputs is easily determined at the time of purchase d. many interchangeable suppliers of the firm's inputs e. high transaction costs of contracting with resource suppliers