Suppose that there is only one seller in the computer industry. If the demand curve that the only seller in the industry faces is a straight-line, downward-sloping curve, at which point would the seller's total revenue be maximized?
A. at the highest point on the demand curve, where price is the highest
B. at a point high on the demand curve, where elasticity is elastic
C. at the midpoint of the demand curve, where elasticity is unitary
D. at a point low on the demand curve, but not at the very bottom
Answer: C
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If a monopolistically competitive industry is in long-run equilibrium and suddenly the cost of resources increases, then:
a. the demand and average-revenue curves will shift to the right. b. the demand and average-revenue curves will shift to the left. c. some firms will eventually leave the industry. d. new firms will eventually enter the industry. e. the cost structure of the firm will shift down.
Countries that came together by treaty to form the General Agreement on Tariffs and Trade (GATT) agreed to treat all members equally with respect to trade, impose high tariffs on non-GATT countries, and impose low import quotas on non-GATT countries
Indicate whether the statement is true or false
If a perfectly competitive industry is in long-run equilibrium, the price of the product equals the minimum of:
A. marginal cost. B. fixed cost. C. average variable cost. D. average total cost.
If banks do not have enough reserves to satisfy the reserve requirement, they can borrow additional reserves in the federal funds market.
Answer the following statement true (T) or false (F)