Suppose a Chinese restaurant routinely provides free fortune cookies to its customers. The economic way of thinking suggests the restaurant is
A) engaging in predatory pricing of its meals.
B) attempting to increase its total profit.
C) selling Chinese food below cost.
D) doing all of the above.
E) almost certainly doing none of the above.
B
Economics
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Economic growth tends to be higher in a country that
A) has an open economy that encourages the rapid spread of technology. B) does not grant patents to investors. C) has a low saving rate. D) has an undeveloped system of property rights.
Economics
If peanut butter and jelly are complements, then their cross elasticity of demand must be
A) infinitely high. B) a positive number that might be greater than 1. C) a number between zero and one. D) a negative number.
Economics