Firms that are price takers
A) can raise their prices as a result of a successful advertising campaign.
B) are able to sell all their output at the market price.
C) are able to sell a fixed quantity of output at the market price.
D) must lower their prices to increase sales.
B
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Suppose a single-price monopoly sells 3 units of a good at $20 per unit. If the monopoly sells 4 units, the total revenue increases to $72. What price is being charged for 4 units?
A) $52 each B) $18 each C) $60 each D) $12 each E) $20 each
If demand is unit elastic, then a 10 percent increase in the price will lead to a 10 percent increase in quantity demanded
a. True b. False Indicate whether the statement is true or false
JoJo has a monopoly producing stringless yoyos. His company is called JoJo's Yoyos. As a result of his monopoly position,
A. he is guaranteed a profit. B. if he loses money in the short run, he will make money in the long run. C. his average total costs will always be lower than the price he charges. D. None of the choices are correct.
Trade disputes between the U.S. and Japan could be mediated by
A. UNESCO. B. NAFTA. C. the WTO. D. U.S. courts.