In the short run, a firm that shuts down and produces no output incurs a loss equal to its

Which of the following best illustrates the concept of external cost? Bad weather decreases the size of the wheat crop. An increase in the demand for cheese raises the price paid by consumers of pizza, thereby harming these consumers. Smoking harms the health of the smoker. Smoking harms the health of nearby non-smokers.

A student named Sydna lives on a desert island and can either fish or gather dates. If she spends 8 hours fishing, she catches 8 fish; if she spends 8 hours gathering dates, she finds 4 dates. Then, the opportunity cost of catching a fish is:

The demand for and supply of AI chips both increase equally. As a result, the equilibrium price of an AI chip ____ and the quantity ____.

A production point inside a production possibilities frontier indicates

The Lorenz curve in Nation A is closer to the 45º line of equality than the Lorenz curve in Nation B. Consequently, it is definitely the case that Income is distributed more equally in Nation A than Nation B. The average income is higher in Nation A than in Nation B.

Because of an advance in technology, a monopoly finds that its MC curve has shifted downward. The firm will ____ its price and ____ the quantity it produces.

A fall in the price of cabbage from $10.50 to $9.50 per bushel increases the quantity demanded from 18,800 to 21,200 bushels. The price elasticity of demand is

Georgine buys more sweaters when her income increases. For Georgine, sweaters are ____ good.

Imagine that Intel and AMD are a duopoly, that is, the only two firms that produce CPU chips. Further suppose that they form a cartel which produces the monopoly profit-maximizing output and sets the monopoly profit-maximizing price. Both firms equally share the economic profit. If Intel and only Intel cheats on the cartel, Intel ____ its output, Intel’s economic profit ____, and total economic profit of the two firms combined ____.