Chap2 - True-False Questions 1. Costs that can be reduced...

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True-False Questions 1. Costs that can be reduced by altering production are referred to as sunk costs. (F) 2. If the price of a good has increased and the quantity of the good sold has decreased, the demand curve for the good has shifted to the right. (F) 3. With a price inelastic demand curve, price and total revenue move in the same direction as you move along the demand curve. (T) Multiple Choice Questions 4. Every day at the local fish market, there are 50 demanders who are willing to pay up to $45 for a fish, 35 demanders who are willing to pay up to $25 for a fish, and 10 demanders who are willing to pay up to $20 for a fish. No demander wants more than one fish. There are 20 fishermen who sell fish in this market. Every day the fishermen arrive with the day's catch. Each fisherman has spent $10 on fuel for his boat the night before, but they have no other costs. Fish that are not sold on the same day they are caught will rot and become worthless. Every day the fish market reaches a competitive equilibrium price for the day's fish. On Monday each fisherman caught 2 fish, on Tuesday each fisherman caught 3 fish, on Wednesday each fisherman caught 4 fish, and on Thursday each fisherman caught 5 fish. On which day did the fishermen make the greatest profit? (a) Monday
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Chap2 - True-False Questions 1. Costs that can be reduced...

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