Author Question: Which of the following commodities can be considered as an inferior good? a. Dwelling in a small ... (Read 25 times)

JMatthes · **on:** Jun 30, 2018

Which of the following commodities can be considered as an inferior good?
a. Dwelling in a small apartment located in a suburb
b. Washing clothes in a washer at home
c. Eating out at an upscale restaurant
d. Spending vacations at exotic locations

Question 2

When a firm incurs negative economic profit, it should:
a. hire more laborers to make the business activity profitable.
b. transfer the resources from its current use to other alternative uses.
c. purchase additional raw materials to produce more output.
d. transfer additional resources from other alternative uses to the current activity.
e. continue to operate with the same resources.