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Author Question: The opportunity cost to the firm of producing one more unit of output is also called marginal cost. ... (Read 145 times)

Awilson837

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on: Jun 29, 2018
The opportunity cost to the firm of producing one more unit of output is also called marginal cost.
 
  Indicate whether the statement is true or false

Question 2

The income elasticity of demand for store brands of soda (that is, non-name brands) is negative. What does this fact indicate about consumers' perceptions about the store brands?
 
  What will be an ideal response?
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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Expo

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Reply #1 on: Jun 29, 2018
Answer to Question 1

TRUE

Answer to Question 2

The negative income elasticity indicates that the store brands of soda are considered by many consumers to be an inferior good. Hence as income increases, consumption of these sodas decreases as consumers opt for name sodas, such as Pepsi and Coke.


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