If a monopoly is operating on the demand curve where price elasticity is equal to -3, and price equals 3, then MR is equal to
A) -1.
B) 1.
C) -2.
D) 2.
D
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The assumption that firms meet the demand for their products at preset prices is the key assumption upon which ________ is built.
A. the supply and demand model B. the basic Keynesian model C. Say's Law D. quantity equation for money
Income elasticity of demand describes how change in income affects the quantity demanded of a good.
Answer the following statement true (T) or false (F)
Antitrust laws tend to target restraint of trade as characterized by __________
Fill in the blank(s) with correct word
Assume that the government implements a deficit-reduction policy that results in changes in aggregate income and output. Then the Federal Reserve engages in monetary policy actions that reverse the changes in income and output caused by fiscal policy action. Which of the following sets of changes in taxes, government spending, the required reserve ratio, and the discount rate is most consistent with these policies?
(a) Increase / Increase / Decrease / Increase (b) Increase / Decrease / Decrease / no change (c) Increase / Decrease / Increase / Decrease (d) Decrease / Increase / no change / Increase (e) Increase / Decrease / Decrease / Increase