Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:
a. Andy's demand for pizza to increase
b. Andy's demand for pizza to decrease.
c. Andy's quantity of pizza demanded to decrease.
d. Andy's demand for beer to increase.
d
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Which of the following provides the foundation of the case for free trade?
a. the law of diminishing marginal utility b. the anti-dumping argument c. the industrial diversity argument d. the law of comparative advantage
Answer the following questions true (T) or false (F)
1. For a natural monopoly, the marginal cost of producing an additional unit of its product is relatively small. 2. The National Football League has long-term leases with the stadiums in major cities. Control of these stadiums is an entry barrier to a potential new football league. 3. Most pharmaceutical firms selling prescription drugs continue to earn economic profits long after the patents on the prescription drugs expire because they have established a strong foothold in the market.