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
Answer: B
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Refer to Table 4-8. If a minimum wage of $10.00 an hour is mandated, what is the quantity of labor supplied?
A) 390,000 B) 370,000 C) 350,000 D) 40,000
Johnny has been working a lot of overtime during the most current economic boom. As a result, his income is high enough for him to move from the 10 percent tax bracket to the 15 percent tax bracket. So, Johnny pays a higher percentage of a higher income to the government this year. The increased amount paid to the government is an example of:
A. discretionary fiscal policy slowing the economy. B. automatic stabilizers slowing the economy. C. discretionary fiscal policy encouraging economic activity. D. automatic stabilizers encouraging economic activity.
The long-run supply curve is upward sloping in an increasing cost industry.
Answer the following statement true (T) or false (F)
A monopolist is producing at an output level at which ATC = $5, P = $6, MC = $3, and MR = $4. We can conclude that
A) economic profit could be increased by producing more. B) economic profit could be increased by producing less. C) economic profit cannot be increased. D) the firm is earning $10 in economic profits.