Which of the following statements is inconsistent with an elastic demand curve?
A. The price-elasticity coefficient is less than 1
B. Total revenues fall when prices rise
C. Buyers are relatively sensitive to price changes
D. The relative change in quantity exceeds the relative change in price
A. The price-elasticity coefficient is less than 1
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Because many business situations are repeated games, firms may be able to avoid the prisoner's dilemma and implicitly collude to keep prices high
Indicate whether the statement is true or false
In the long run, what level of economic profits can a monopolistic competitor expect to receive?
A) positive B) zero C) negative D) either negative or positive, depending on the demand for its product and its costs
Real estate agents have been found to keep their own homes on the market longer and sell their homes for more than comparable homes of the individuals they represent. This phenomenon is best described by which of the following concepts?
a. Adverse selection b. Moral hazard c. Availability bias d. Time inconsistency
A U.S. bank loaned a Canadian oil company 1 million U.S. dollars. The Canadian company then used the entire loan to buy mining equipment from a U.S. company. As a result of these transactions, by how much and in which direction did: A. U.S. net exports change? B. U.S. net capital outflow change?