If a firm in a perfectly competitive industry raises its price above market price,
A. sales will drop to zero.
B. demand curves will become downward sloping.
C. total revenue for the firm will increase.
D. profit will increase.
Answer: A
You might also like to view...
It is not possible for a country to experience
a. economic development without economic growth. b. economic growth without economic development. c. economic growth and economic development simultaneously. d. both (a) and (b) are correct.
A tight monetary policy does all of the following, except
A. raise interest rates. B. drive up the dollar relative to foreign currencies. C. raise net exports. D. increase imports.
Internal shocks to an economy with a fixed exchange rate will
A. have no impact on the domestic economy but will lead to external imbalances. B. have the same types of impacts as monetary and fiscal policy changes. C. have no impact on the country's internal balance but will change the country's balance of payments. D. have no impact on both the country's internal balance and the country's balance of payments.
Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If the exchange rate changes to $1 equals 8 pesos, which of the following is TRUE?
A) The dollar depreciates and U.S. exports become cheaper. B) The dollar appreciates and U.S. exports become cheaper. C) The peso depreciates and imports from Mexico become cheaper. D) The peso appreciates and imports from Mexico become cheaper.