The price elasticity of demand for a variable input will be more elastic in all the following cases EXCEPT
A) the greater the price elasticity of demand for the final product.
B) the easier it is for a particular variable input to be substituted for by other inputs.
C) the larger the proportion of total costs accounted for by a particular variable input.
D) the shorter the time period being considered.
D
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Refer to Figure 8.1. If each player cooperated with one another rather than playing their dominant strategies, the economic pie would grow by
A) $0. B) $280. C) $490. D) $560.
The term Ceteris paribus means that:
a. the model includes all important variables occurring in the real world. b. all factors which influence the event are changing at the same time. c. one influence is changing and everything else is being held constant. d. the consumer is king.