Which of the following is not a determinant of a good's price elasticity of demand?
A) the slope of the demand curve
B) whether the good is a luxury or a necessity
C) the share of the good in the consumer's total budget
D) the passage of time
A
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A perfectly competitive firm earns a profit when price is
A) equal to minimum average variable cost. B) above minimum average total cost. C) equal to minimum average total cost. D) equal to minimum average fixed cost.
An economy is judged efficient if
a. it is good at producing what people want. b. it produces things that people may not want but in the least wasteful way. c. produces whatever people want in a way that may not be the least wasteful. d. it is a free-market economy and not a command market.
In the EU in 2005, Microsoft was fined and required to______.
a. pay workers the market wage b. offer bundled and unbundled software c. change its advertising to accurately reflect its products d. charge the same price to all customers regardless of location
If a firm in a perfectly competitive industry lowers its price below the market price, its
A. sales will drop to zero. B. profit will decrease. C. total revenue will increase. D. demand curve will become downward sloping.