a. Define income elasticity, and state its range of values for normal goods. whin in comet gors ap, the quoutity demonded of nommot good 8oes up. b. What's the difference between à fixed cost and a sunk cost? sunk can b avoi'sid for trample heating thuat oner c. If the average product of labor is rising, does that mean the marginal product milk fixed Cost dom are not awsiduble spillip aosts Cost of labor is also rising? d. If the price of a complement for good a increases, what happens to the demand curve of good ar? Demand shifts olown e. If average total costs are minimized and fixed costs are zero, then are the average variable costs also minimized? Yes because when ho lred Cost ATC EAVC
a. Define income elasticity, and state its range of values for normal goods. whin in comet gors ap, the quoutity demonded of nommot good 8oes up. b. What's the difference between à fixed cost and a sunk cost? sunk can b avoi'sid for trample heating thuat oner c. If the average product of labor is rising, does that mean the marginal product milk fixed Cost dom are not awsiduble spillip aosts Cost of labor is also rising? d. If the price of a complement for good a increases, what happens to the demand curve of good ar? Demand shifts olown e. If average total costs are minimized and fixed costs are zero, then are the average variable costs also minimized? Yes because when ho lred Cost ATC EAVC
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter18: Pricing The Factors Of Production
Section: Chapter Questions
Problem 4TY
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