The short-run price elasticity of demand for gasoline in the US retail market is -0.25.Which of the following values would be a reasonable value for the long-run price elasticity of demand in this market?

A.-0.85

B.-0.15

Which of the following statements is NOT true?

A.Economic profit can be more than accounting profit

B.Accounting profit can be positive while economic profit may be negative

C.Accounting profit can be equal to economic profit

D.Accounting profit can be more than economic profit

Suppose the average cost curve for an electricity generation plant is downward sloping for all relevant quantities of output.This firm exhibits

A.Diseconomiesof scale

B.Economies of scale

C.Diseconomies of scope

D.Economies of scope

Suppose you are the production manager for Tesla's battery manufacturing plant, and you find that an increase in output this quarter tends to reduce production costs in the next quarter.Based on this information, your cost structure exhibits the characteristics of

A.Economies of scope

B.Diseconomies of scale

C.Learning curves

D.Diseconomies of scope

Which of the following statements is NOT true?

A.Total costs increase as output increases

B.Average fixed costs can be constant as output increases if total fixed costs are positive

C.Average fixed costs always decline as output increases if total fixed costs are positive

D.Average fixed costs is constant as output increasesif total fixed costs equal zero

The average variable cost curve is downward sloping if marginal cost is less than average variable cost.

True

False

A price floor imposed below the equilibrium market price leads to

A.We need more information to answer this question

B.Higher quantity supplied than quantity demanded

C.Higher quantity demanded than quantity supplied

D.No impact on the market equilibrium

Which is more elastic?

A.Demand for all coffee drinks

B.Demand for espresso-based coffee drinks

The price elasticity of demand for onlinebook buyers is -0.4 for Barnes and Noble customers and -1.2 for Amazon customers.Both firms set prices that maximize profits from onlinebook sales.Based on this information, which firm should have the higher current margin (Lerner index) from online book sales?

A.We do not have enough information to answer this question

B.Both firms should have the same profit margins

C.Barnes and Noble

D.Amazon

When are accounting profits equal to economic profits?

A.Explicit costs are zero

B.Implicit (opportunity) costs equal zero

C.Accounting profits are zero

D.Implicit (opportunity) costs are positive

The short-run price elasticity of demand for gasoline in the USis roughly equal to -0.25,which tells us that

A.gasoline is an inferior good in the US

B.the short-run demand for gasoline is elastic

C.the short-run demand for gasoline is inelastic

D.gasoline consumers are completely unresponsive to price changes