The dean of your college is considering hiring another economics professor. If the additional revenue that the college can earn from employing the professor exceeds the additional cost, the college should
a. do nothing
b. continue to study the issue
c. hire the professor
d. stop offering economics classes
e. not hire the professor and lay off a professor already on the faculty
C
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Which of the following is NOT similar between monopolistic competition and perfect competition?
A) Many firms compete in the market. B) It's easy to enter the market. C) The firms have downward sloping demand curves. D) The firms might incur economic losses in the short run. E) In the long run, the firms earn zero economic profit.
Public companies ________ and private companies ________
A) sell stock in financial markets; also sell stock in financial markets B) sell stock in financial markets; do not sell stock in financial markets C) do not sell stock in financial markets; sell stock in financial markets D) do not sell stock in financial markets; also do not sell stock in financial markets
Demand is inelastic if
A. the quantity demanded does not change very much even if the price changes dramatically. B. the demand curve is bowed inward. C. the quantity demanded changes along with the price. D. the demand curve is bowed outward.
Even though price elasticity of demand is always ________, by convention its absolute value is always discussed as a ________.
A. negative; positive number B. a fraction; whole number C. negative; prime number D. positive; negative number