The town of Marshall's Boy Scout Troop 1099 decreased car parking prices at the Celebrate Marshall Festival and found they made higher profits. This likely occurred because
a. marginal cost was equal to marginal revenue
b. marginal revenue was higher than marginal cost
c. marginal revenue was less than marginal cost
d. demand was inelastic
e. marginal revenue was increasing
B
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A monopolist has four distinct groups of customers. Group A has an elasticity of demand of 0.2, B has an elasticity of demand of 0.8, C has an elasticity of demand of 1.0, and D has an elasticity of demand of 2.0
The group paying the highest price for the product will be A) A. B) B. C) C. D) D.
If TruLite's factory workers receive an hourly wage, described by the equation; Compensation = $5.00 + .10Q, where Q is the number of light switches installed per hour, then:
A. the employee can remain completely risk-averse. B. there are no compensating differentials. C. output becomes a subjective measure of performance. D. the employee must accept risk of production variability.
Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A. Mexico should specialize in the production of tomatoes. B. Mexico should specialize in the production of machinery. C. The United States should specialize in the production of machinery. D. The United States should specialize in the production of both goods because it has an absolute advantage in the production of both.
Inventory reductions caused by strong demand are signals to retailers to order more products.
Answer the following statement true (T) or false (F)