If a country's saving rate increases, then in the long run
a. productivity is higher but real GDP per person is not higher.
b. real GDP per person is higher but productivity is not higher.
c. productivity and real GDP per person are both higher.
d. neither productivity nor real GDP per person is higher.
c
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Chips and salsa are complements. If the price of salsa decreases, the demand for chips will increase
Indicate whether the statement is true or false
If fixed costs do not change, then marginal cost
A) equals the change in variable cost divided by the change in output. B) also remains constant. C) equals the change in average fixed cost divided by the change in output. D) equals the change in average variable cost divided by the change in output.
Perfect price discrimination
a. eliminates deadweight loss. b. reduces profits to the monopolist. c. decreases the total quantity sold by the monopolist. d. requires arbitrage in order for the monopolist to maximize profits.
Suppose the price elasticity of demand for a product is 1.3 . If a supplier wants to increase revenue, what change should it make to price, if any?