Would a profit-maximizing firm sell where demand is inelastic?
a. No, this would not follow the rule of MC = MR.
b. No, the firm could not profitably raise price.
c. Yes, the firm could profitably lower price to attract sales.
d. Yes, in this case there are few substitutes for the good.
a
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For an economy starting at full employment real GDP, an increase in autonomous expenditure results in a(n)
A. increase in full-employment output. B. decrease in full-employment output. C. recessionary output gap. D. inflationary output gap.
Which of the following would NOT be a sign that China wants to become a high technology producer?
A) More patents are being sought and granted in China B) Large spending on infrastructure C) Rapid expansion of science, engineering and research D) Less emphasis on education spending
Assets that are used for money that have intrinsic value generally keep:
A. a less steady value than those that don't. B. just as steady a value as those that don't. C. a more steady value than those that don't. D. a value that is not comparable to other assets.
Suppose an industry is composed of 10 firms. Each firm's share of total sales in the industry is 10 percent. If two of the firms merge, then the four-firm concentration ratio in the industry is
A. 50 percent. B. 45 percent. C. 40 percent. D. unable to determine.