Holding all other forces constant, if decreasing the price of a good leads to an increase in total revenue, then the demand for the good must be
a. unit elastic.
b. inelastic.
c. elastic.
d. None of the above is correct because a price decrease never leads to an increase in total revenue.
c
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A common response to stop a depreciation of a currency is to use contractionary monetary policy, which could lead to a recession
Indicate whether the statement is true or false
For the practice of price discrimination to be successful, the monopoly must
a. face an imperfect resale market for its product. b. face similar demand curves for various markets. c. have similar costs among markets. d. have a downward sloping marginal cost curve.
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below.Acme Manufacturing: TC = 100 + 3Q Generic Industries: TC = 500 + 3Q Suppose that Acme and Generic face the same demand curve. If each firm produces its profit-maximizing level of output and earns a positive economic profit, then which of the following statements is true?
A. Generic will produce more output than Acme. B. Acme and Generic will produce the same quantity, but Acme will have higher profits. C. Acme will produce more output than Generic. D. Acme and Generic will produce the same quantity and will have the same profits.
Which of the following is one of the main features of our modern economy that helps ensure against a repeat performance of the Great Depression?
A. Transfer payments B. Outsourcing C. Multiplier D. Personal income tax