A decrease in demand will:
a. reduce total revenue
b. increase total revenue.
c. increase total revenue only if demand is inelastic.
d. increase total revenue only if demand is elastic.
a. reduce total revenue
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As a perfectly competitive firm's output increases, its total revenue ________ and its total cost ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; increases
In the short run, if price is below AC, maximizing profits really means minimizing total losses
a. True b. False Indicate whether the statement is true or false
The law of supply states that other things being equal
A. supply creates its own demand. B. supply will increase to meet demand if demand increases. C. supply will increase if productivity increases. D. as price increases, quantity supplied increases.
A demand curve that is perfectly horizontal is
A. perfectly elastic. B. perfectly inelastic. C. relatively elastic. D. relatively inelastic.