When marginal revenue is positive, total revenue ________ when output increases and demand is ________
A) decreases; elastic
B) decreases; inelastic
C) increases; elastic
D) increases; inelastic
E) does not change; unit elastic
C
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When there are ∞ degrees of freedom, the t∞ distribution
A) can no longer be calculated. B) equals the standard normal distribution. C) has a bell shape similar to that of the normal distribution, but with "fatter" tails. D) equals the distribution.
Ajax has just discovered that the marginal revenue product generated by the last worker hired was $75 while the marginal factor cost was $95. What should Ajax do?
A) Leave the level of production unchanged. B) Increase the amount produced. C) Reduce the amount produced. D) Collect more information before making a decision.
The incidence of a tax:
A. falls entirely on suppliers if supply is perfectly elastic. B. falls entirely on suppliers if demand is perfectly inelastic. C. falls entirely on consumers if supply is perfectly elastic. D. falls entirely on consumers if demand is perfectly elastic.
In general, the smaller the numerical value of price elasticity (in absolute value):
a. ?the smaller the responsiveness of price to changes in consumers' quantity demanded. b. ?the smaller the responsiveness of consumers' quantity demanded to changes in price. ?c. the larger the responsiveness of price to changes in consumers' quantity demanded. ?d .the larger the responsiveness of consumers' quantity demanded to changes in price.