The elasticity of demand is
A) measured in money (e.g., dollars).
B) measured in units of the good (e.g., slices of pizza).
C) unitless.
D) measured in money/unit (e.g., 1.50 $/slice of pizza).
C
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Predatory pricing occurs when
a. firms collude to set prices. Economists are certain this practice is profitable. b. firms collude to set prices. Economists are skeptical that this practice is profitable. c. A monopolist decreases its prices to maintain its monopoly. Economists are certain this practice is profitable. d. A monopolist decreases its prices to maintain its monopoly. Economists are skeptical that this practice is profitable.
The above figure shows the situations of a monopolistic competitor in the short run. To maximize profits, the firm should produce
A) 10,000 units. B) 12,000 units. C) 13,000 unit. D) somewhere between 10,000 and 12,000 units.
The following table depicts both the product and labor markets for imported coffee. What is the total revenue when 15 workers per day are hired?
A) $5,000 B) $6,750 C) $7,350 D) $7,500
Which of the following shows the demonstration effect?
a. Ads that reveal the weak points of advertising b. Ads that make consumers want something they never wanted before c. Ads that push products that need to be shown how to use d. Ads that cause controversy among critics of advertising