If a monopolist claims his profit-maximizing markup factor is 3, what is the corresponding price elasticity of demand?
A. ?2.5.
B. ?3.0.
C. ?2.0.
D. ?1.5.
Answer: D
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Over a short-run period (i.e., week or month), ________ dominate exchange rate movements
A) short-run inflation differentials B) nominal price changes C) relative price changes D) None of the above
What would be the effect of an increase in the European Money Supply in the Dollar Euro Exchange Rate?
What will be an ideal response?
An insurance company that writes automobile policies tries to separate safe drivers from risky drivers by offering policies that feature different deductibles and different premiums. This practice is best described as an example of
a. screening. b. behavioral economics. c. monitoring. d. signaling.
Exhibit 6-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 As shown in Exhibit 6-9, the average total cost of producing 5 units is:
A. $20. B. $30. C. $50. D. $250.