The price elasticity of demand for wheat is 0.42. A drought cuts the supply of wheat. What will happen to the farmers' total revenue?
A) The total revenue will increase.
B) The total revenue will decrease.
C) The total revenue will not change.
D) There is not enough information to determine what happens to the total revenue.
A
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The more restrictive affirmative action programs are,
A) the greater the likelihood of the economic pie shrinking. B) the lower the administrative costs of administering the program. C) the larger the wage gap tends to get. D) the greater the amount of labor market discrimination.
Which of the following statements is true of price makers?
A) The supply curve of price makers is downward sloping. B) The demand curve that price makers face is upward sloping. C) Price makers set the price of a good after they determine how much to produce. D) Price makers determine how much to produce after they set the price of a good.
A monopoly misallocates resources when it
A) restricts output so that the marginal benefit of the last unit sold exceeds the marginal social cost of producing the good. B) makes an above-normal profit. C) sells the same product to different groups of customers at different prices. D) exploits scale economies.
One reason that monopolies often earn zero economic profits is that
a. many monopolies are regulated by the government b. competitors cut prices c. barriers to entry are low d. collusion prevents profits e. costly concessions to labor suppliers reduce economic profit