If market demand is inelastic and supply is subject to severe shifts from season to season, it follows that
A) price changes are likely to be small.
B) price changes are likely to be large.
C) total revenue is likely to be constant over time.
D) total revenue is likely to be highly volatile.
E) b and d
E
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In a common-value auction
a. Every bidder knows the exact value of the item being auctioned b. Each bidder knows everyone else's value of the item c. The value of the item is different for all the bidders d. None of the above
When a firm is on the inelastic segment of its demand curve, it can:
A. increase total revenue by reducing price. B. decrease total costs by decreasing price. C. increase profits by increasing price. D. increase total revenue by more than the increase in total cost by increasing price.
What are the main forces shaping today's economy, and how are they impacting the economy?
What will be an ideal response?
When marginal utility is positive but decreasing, total utility is
A) decreasing. B) negative. C) increasing. D) zero.