Suppose the point (Q = 3,400, P = $20) is the midpoint on a certain downward-sloping, linear demand curve. Then
a. a decrease in price from $18 to $16 will increase total revenue.
b. a decrease in price from $24 to $22 will decrease total revenue.
c. a decrease in the price from $21 to $19 will decrease total revenue.
d. the maximum value of total revenue is $68,000.
d
You might also like to view...
If the price of toothpaste is represented by equation P = 40 - .5QD, then the corresponding quantity of toothpaste demanded is represented by the equation
A) QD = 80 - 2P. B) QD = 40 - P. C) QD = 20 - .5P. D) QD = -20 + P.
Consider an industry that is made up of nine firms each with a market share (percent of sales) as follows:
a. Firm A: 30% b. Firm B: 20% c. Firms C, D, and E: 10% each d. Firms F, G, H, and J: 5% each What is the value of the four-firm concentration ratio and how is the industry categorized? A) 80%; strongly oligopolistic B) 70%; oligopoly C) 50%; monopolistic competition D) 75%; oligopoly
Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00.Number ofworkersCoffee(cups/hour)00125245360470575 The dollar value to the coffee shop of hiring the fifth worker is ________ per hour.
A. $7.50 B. $5.00 C. $2.00 D. $1.50
Figure 14.5 represents the market for used cars. Suppose buyers are willing to pay $5,000 for a plum (high-quality) used car and $3,000 for a lemon (low-quality) used car. If buyers believe that 80% of used cars in the market are lemons (low quality), what percent of used cars sold will actually be plums?
A. 20% B. 25% C. 33.33% D. 75%