In which instance will total revenues decline?
A. price increases and demand is unit-elastic
B. price increases and Ed equals -2.47
C. price increases and Ed equals -.41
D. price decreases and demand is elastic
Ans: B. price increases and Ed equals -2.47
You might also like to view...
A monopsonist finds its profit maximizing quantity of labor employed at the point at which
A) marginal revenue product is zero. B) marginal revenue product equals marginal factor cost. C) marginal factor cost is zero. D) total cost equals total revenue.
Answer the following questions true (T) or false (F)
1. In the long-run equilibrium, both the perfectly competitive firm and the monopolistically competitive firm produce the output at which MR=MC and charge a price equal to the average total cost of production. 2. Most economists believe that consumers would be better off if markets were perfectly competitive rather than monopolistically competitive. 3. An oligopolistic industry is characterized by a few large firms acting independently.
The ratio of the prices of two products that a consumer would buy with a given fixed income is equivalent to the:
A. Marginal rate of substitution B. Slope of the budget line C. Income elasticity of demand for the two products D. Price elasticity of demand for the two products
A statistics is a ___________
Fill in the blank(s) with the appropriate word(s).