56 Best Microeconomics Questions and Answers (Q&A) - ProProfs Discuss

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What happens if consumers think that there are very few substitutes for a good?

C. Hughes, Musician
Answered: Sep 25, 2020

Price elasticity refers to the extent of change in consumer's demand for slight differences in prices of goods; on a normal day, demand increases when price reduces, and it reduces when the price...Read More

2 Answers

1208 views

What is optimum combination?

C. Marcus, Content Developer
Answered: Aug 23, 2018

The optimum combination is also called the least cost combination. It is the number of factors that is used by companies to produce a specific product at the least possible price. It is the...Read More

2 Answers

1193 views

What does the idea in economics that “there is no free lunch” mean?

Y. Dawne, Content Blogger
Answered: Feb 07, 2019

The economic theory, and also the lay opinion, that whatever goods and services are provided, they must be paid for by someone - that is, you don't get something for anything. The phrase is also...Read More

2 Answers

1088 views

What does the decrease in the price of coffee (other things being equal) result in if coffee and tea are substitutes?

Venuste
Answered: Feb 07, 2019

The decrease in price for coffee (a substitute for tea) will make consumers demand more coffee than tea. Remember that demand curve runs from the top left corner to the bottom right corner and...Read More

3 Answers

1087 views

What is true if the price of a good is above the equilibrium price?

Hanneke , Teacher
Answered: Jun 04, 2020

There is a surplus and the price will fall. Equilibrium price means a balanced price of goods, where the price favors both the producer and the consumer. When the price of a commodity goes...Read More

3 Answers

937 views

What will be the slope of the corresponding total-cost curve if a production function exhibits diminishing marginal product?

N. Kingsley, Writer
Answered: Feb 20, 2019

If a production exhibits diminishing marginal product, the slope of the corresponding total – cost curve will become steeper as the number of output increases. The law of dimini...Read More

2 Answers

904 views

What is a buyer's willingness to pay?

N. Kingsley, Writer
Answered: Jul 11, 2018

A buyer would be willing to pay is measured in the maximum’s amount he is willing to pay for a good. Usually, products tend to be more expensive if high-quality materials were used just to...Read More

3 Answers

890 views

What is the total cost of producing 80 units of output?

E.Ronald
Answered: Jan 03, 2018

Capital is defined as the money it takes to make a business run. In order to maintain a business, capital is needed to pay for the supplies, labor and materials needed to run the business. In...Read More

2 Answers

828 views

What do higher input prices result in?

B.Lisa
Answered: Feb 26, 2018

Input costs can include materials, labor, fees, and other expenses. Output is the finished product. MC stands for marginal costs. If a company is spending more on their input costs, such as...Read More

3 Answers

752 views

What does the slope of an indifference curve indicate?

H. Martin, Content Writer
Answered: Sep 20, 2018

The slope of the indifference curve is known to be the marginal value. The marginal rate of substitution is usually done when the value of y is given up in order to improve the value of x. This...Read More

3 Answers

746 views

What can a firm with increasing returns to scale expect if input prices are constant?

John Smith
Answered: Apr 18, 2024

C.costs to go up less than double as output doubles.

1 Answer

726 views

What will increase in the price result in if the demand curve for good X is downward-sloping?

Economist
Answered: Mar 09, 2021

As we know that, the law of demand states the -ve relationship between the price and quantity of demand and, I can't say when the price of goods is decreased, so the smaller quantities of demand...Read More

4 Answers

684 views

What is production function exhibit?

L. Sevigny, Doctor
Answered: Feb 21, 2019

The answer to this is C. This will show that the scales will be improved to all output levels. It has always been said that agriculture can be a good source of income not only for farmers but...Read More

2 Answers

670 views

What do they mean when economists say that the demand for a product has decreased?

Bergeront Tiffney, Computer Engineer
Answered: Dec 17, 2018

When a store owner or business person wants to graph their sales to determine which items are selling well and which ones are not selling well but staying on the shelves for long periods of time...Read More

2 Answers

614 views

What does the law of demand state?

John Smith
Answered: Apr 18, 2024

Decreases the quantity demanded for that good

1 Answer

605 views

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