Often the pricing of one product can adversely affect the revenue earned from another produced by the same firm. This is possible if
A) the firm can separate customers into separate markets.
B) the firm can exploit the different elasticities of different groups of consumers.
C) the firm cannot separate customers into separate markets.
D) none of these choices.
C
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Using the data in the table above, when the price of a skirt rises from $20 to $35, what is the price elasticity of demand? (Use the midpoint method.)
A) 0.33 B) 0.25 C) 1.00 D) 1.33 E) 3.00
The Long-Run Phillips Curve is vertical, suggesting that ________
A) allowing inflation to rise will not succeed in keeping unemployment low B) changes in unemployment have no lasting impact on inflation C) shifts of the short-run Phillips curve impact inflation, but have no effect on unemployment D) all of the above E) none of the above
Which of the following would be a positive economic statement?
a. Bankers are now charging higher interest rates on credit cards to cover the increased cost of loaning funds to consumers b. The United States should be more aggressive in its trade negotiations with its major trading partners to help reduce the trade deficit c. More money should be allocated by the Federal government to social programs and less money to national defense d. Rents for apartments in this city are too high and must be controlled by city government to keep landlords from making too much profit
Exhibit 8-12 Marginal revenue and cost per unit curves
As shown in Exhibit 8-12, the firm will not produce in the short-run if the price is below:
A. OA. B. OB. C. OC. D. OD.