Knowing the price elasticity of demand is important in business because it allows a manager to determine whether:
A. a price increase will cause total revenue to rise or fall.
B. an increase in supply will cause total profit to rise or fall.
C. a price increase will cause the quantity demanded to rise or fall.
D. a price increase will cause the demand to rise or fall.
A. a price increase will cause total revenue to rise or fall.
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Economics is a social science rather than a “hard” science like physics because
A. economists abstract from reality when creating their theories. B. economics is easier to study than physics. C. economists must explain their theories to policy makers who lack formal mathematical training. D. economists study human behavior, which is affected by an unpredictable and vast range of influences.
If a firm seeks to maximize total revenue, it should produce the quantity where: a. marginal revenue equals zero
b. elasticity of demand is less than one. c. elasticity of demand is greater than one. d. marginal revenue is maximized.
Beta measure overall risk in the stock market
Indicate whether the statement is true or false
According to the law of diminishing marginal utility:
A. total utility is always falling. B. after some point, total utility falls. C. total utility is always rising. D. after some point, the rate of change in total utility declines.