If We Wanted to Prove That Macaroni Is an Inferior

question 24

Multiple Choice

If we wanted to prove that macaroni is an inferior good, we would test the __________ of macaroni and get a __________.

• A)cross-price elasticity; negative number
• B)income elasticity; number less than 1
• C)income elasticity; positive number
• D)price elasticity of demand; number greater than negative 1
• E)income elasticity; negative number

---

Definitions:

Average Total Cost

The total cost divided by the number of goods produced, representing the per-unit cost of production.

Profit-Maximizing Monopoly

A market condition where a single seller dominates, aiming to achieve the highest possible profit by controlling prices and output.

Total Profit

The total income of a business after all expenses and costs have been deducted from its total revenue.

Optimum Efficiency

The state in which resources are allocated in the most efficient manner possible, maximizing outputs while minimizing wastes and costs.