Avital and Joshua each have their own business selling lemonade in front of their houses. When they each charge 25 cents per glass, their total revenues are equal. However, when they each charge 40 cents per glass, Avital's revenues are bigger than Joshua's revenues. This is because:
a. Joshua faces a more inelastic demand curve.
b. Avital faces a more elastic demand curve.
c. Joshua faces a more elastic demand curve.
d. Avital faces a less inelastic demand curve.
e. there is a market failure.
c
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Which of the following is likely to be used as a signal in the job market?
A) The job description B) The degree obtained by the applicant C) The letter of appointment D) An announcement of vacancy
The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The firm maximizes its profit by
A) producing 8 units and charging a price of $5. B) producing 8 units and charging a price of $15. C) producing 16 units and charging a price of $10. D) producing 20 units and charging a price of $25.
In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to
A) the declining marginal product of labor. B) the declining marginal product of capital. C) limits in the ability of government policymakers. D) too little savings.
During economic expansions, banks tend to lend less money because of higher interest rates
Indicate whether the statement is true or false