Why is there no total revenue test for elasticity of supply?
Please provide the best answer for the statement.
The simple answer is a semantic one; a firm’s supply curve is based on costs of production, so we would have to use a “total costs” test. Also, according to the “law of supply,” price and quantity are directly related, so a rise in price would always raise potential total revenue and a fall in price would always decrease potential total revenue, so the total revenue test would not be meaningful.
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Everything else remaining unchanged, a sudden increase in the price of oil is likely to cause a(n):
A) downward movement along the demand curve for labor. B) leftward shift in the demand curve for labor. C) upward movement along the demand curve for labor. D) rightward shift in the demand curve for labor
The price elasticity of demand measures the ________ that results from a ________
A) change in quantity demanded; change in price B) change in price; change in the quantity demanded C) percentage change in price; percentage change in the quantity demanded D) percentage change in the quantity demanded; percentage change in price E) percentage change in the quantity demanded; change in price
A monopolistically competitive firm in the long run will
A. have a demand curve tangent to its AC. B. have a demand curve below its AC. C. have a demand curve above its AC. D. operate where excessive profit can be achieved.
When the cutthroat oligopolist raises their prices, their competitors will ___________.
Fill in the blank(s) with the appropriate word(s).