Refer to the following figure. At what prices are demand curves D1, D2, and D3 unitary elastic?
A. $5; $5; $5; respectively
B. $6; $3; $6; respectively
C. $17; $6; $5; respectively
D. $1; $1; $1; respectively
Answer: B
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Big Waves is a large water park. Suppose the individual demand for entrance into Big Waves is Qd = 50 - (2 × P) and each consumer has the same demand. Big Waves has a constant marginal cost of $5 per consumer. If Big Waves charges the profit-maximizing single entry price to each consumer and offers the profit-maximizing number of entries, what is Big Waves profit per consumer?
A) $250 B) $200 C) $100 D) $300
Any permanent change in the quantity of any factor of production available capital, technology, land, or labor can cause a shift in both the long-run and short-run aggregate supply curves
a. True b. False Indicate whether the statement is true or false
Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have data for price (P), MR, ATC, MC, AVC, at the quantity of 1,000 breads a day. Among the other relationships you consider is (P – ATC) which measures the firm's
a. total profit b. profit per unit of output c. marginal profit d. total revenue e. average variable cost
Refer to the above table. What is the absolute price elasticity of demand when price changes from $6.00 to $6.50?
A. 0.60 B. 1.00 C. 0.65 D. 1.60