You are the manager of a gas station and your goal is to maximize profits. Based on your past experience, the elasticity of demand by Ohioans for a car wash is ?3, while the elasticity of demand by non-Ohioans for a car wash is ?1.5. If you charge Ohioans $9 for a car wash, how much should you charge a man with a Kentucky license plate for a car wash?

Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries with a "Buy Canadian" provision

This policy, similar to the original "Buy American" provision in the 2009 U.S. stimulus bill, is likely to cause A) Canadian companies to pay lower prices for protected products. B) exporting countries to retaliate by placing trade barriers on Canadian imports. C) most countries to reduce their own trade barriers to be able to better compete with Canadian imports at home. D) Canadian manufacturers to become more efficient.

Over a five-year span, the ABC Co reduced the amount of labor it hired. At the same time, the marginal productivity of labor increased. Which of the following COULD explain this observation?

A) the law of diminishing marginal returns B) labor saving technical change C) organizational innovation D) All of the above.