Suppose you purchase a new home for $300,000, making a down payment of 50% and taking out a mortgage on the balance. What is the return on your investment in your home if one year later the price of your home increases by 50%?

Consider the following types of demand curves:

a. a vertical demand curve b. a horizontal demand curve c. a linear downward-sloping demand curve Which of the demand curves listed exhibits a price elasticity of demand coefficient that remains constant along the demand curve? A) a only B) b only C) a and b only D) a, b, and c

When there are economies of scale,

A) MC > AC, so cost-output elasticity is greater than AC. B) MC < AC, so cost-output elasticity is less than AC. C) MC < AC, so cost-output elasticity is greater than 1. D) MC < AC, so cost-output elasticity is less than 1. E) long-run marginal cost is declining.