If total revenues rise when the market price increases, then we know that
A) demand is inelastic.
B) demand is elastic.
C) demand is unit-elastic.
D) its demand has zero elasticity.
Answer: A
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In the long run, a firm in a perfectly competitive industry will supply output only if its total revenue covers its
A) implicit costs. B) fixed costs. C) explicit costs plus its implicit costs. D) explicit costs.
Which of the following banks is similar to a U.S. investment bank?
A) City banks B) Grossbanken C) Merchant banks D) Cooperative banks
When the production possibilities curve shifts outward,
A. the long-run aggregate supply curve shifts to the right. B. the price level rises in the long run. C. the long-run aggregate supply curve is unchanged. D. the long-run aggregate supply curve shifts to the left.
In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue
(Source: New York Times, July 28, 2012 ) We learn from the article that despite the larger quantity of lobster caught, the total revenue of the fisherman decreased. This fact means that the demand for lobster is A) unit elastic. B) elastic. C) inelastic. D) perfectly elastic.