If economists estimate the price elasticity of demand to be 0.75 for good X and 1.25 for good Y, then the government can raise the most revenue by taxing good Y
Indicate whether the statement is true or false
F
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The principle of minimum differentiation suggests that competitors
A) try to distinguish themselves by offering highly different products. B) try to gain the largest market share by differentiating a popular product. C) tend to make identical goods in order to appeal to the largest number of consumers. D) try to decrease costs by minimizing the differences in the types of resources used.
Keough plans and IRAs are
A) individual pension plans. B) government pension plans. C) corporate pension plans. D) public pension plans.
Other things equal, the equation for the real interest rate indicates that:
a. as inflation increases, the real interest rate will rise. b. as inflation increases, the nominal interest rate will fall. c. as inflation decreases, real income will fall. d. as inflation decreases, the real interest rate will rise. e. as inflation changes, the real interest rate will not change.
Total profit equals
a. TR ? TC. b. average profit times total output. c. total sales revenue minus total cost. d. All of the above are correct.