A firm facing a linear demand curve maximizes its total revenue where demand is:
A. perfectly inelastic.
B. inelastic.
C. elastic.
D. unit elastic.
Answer: D
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What happens in the long run if firms in a monopolistically competitive industry are incurring economic losses? Explain
What will be an ideal response?
Schooling and other types of training
a. are regarded as investment in human capital. b. are an important cause of income differentials. c. involve workers' sacrificing current income in order to enjoy higher future income. d. All of the above are correct.
The Federal Open Market Committee consists of
A. the president and the Board of Governors. B. Congress people, Senators, and the Board of Governors. C. the Secretary of the Treasury and the Board of Governors. D. the Board of Governors and five district bank presidents.
Which of the following does not help to explain why politicians might hesitate to balance the budget in an election year?
A. The inflation rate might rise. B. The economy could be pushed into recession. C. Many people might lose income transfers. D. Voters might become unemployed.