The more elastic is the demand for a product:
A. the greater the difference between marginal revenue and price.
B. the closer is marginal revenue to the price.
C. the more a firm must reduce its price to increase its sales.
D. the less a firm must increase its sales to reduce the price.
B. the closer is marginal revenue to the price.
You might also like to view...
National income =
A) Consumption - Saving +Taxes B) Consumption - Saving - Taxes C) Consumption + Saving + Taxes D) Consumption + Saving - Taxes
If Bella eats one piece of pie, she gains a utility of 10. If she continues, a second piece yields a marginal utility of 8, a third will yield a marginal utility of 2, and a fourth piece of pie will yield a marginal utility of 2. We can say:
A. Bella's marginal utility is not diminishing. B. Bella's total utility will decrease if she eats the third piece of pie. C. Bella's total utility will be maximized if she eats three pieces. D. Bella's total utility decreases after the first piece of pie.
Tie-in-sales require that a customer who buys one product (the tying good) must also ______.
a. pay switching costs to change from one brand (the tied brand) to another brand b. buy a greater quantity of the tying good because many other consumers are buying it c. buy another product (the tied good) that the customer needs to use the first product d. pay more for it than would be charged by a competitor selling the same tying good
Firms need to address many issues when considering benefits, including: