Some sales managers are talking sho
A) "Since our competitors raised their prices our sales have doubled."
B) "It has been an unusually mild winter; our sales of wool scarves are down from last year."
C) "We decided to cut our prices, and the increase in our sales has been remarkable."
D) none of the above
C
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Which of the following is FALSE for a profit-maximizing single-price monopolist?
A) P = MC B) MC = MR C) P > MR D) None of the above because they are all true.
Which of the following statements about the price elasticity of demand along a downward-sloping linear demand curve is true?
A) It is elastic at high prices and inelastic at low prices. B) It is inelastic at high prices and elastic at low prices. C) It is perfectly elastic at very high prices and perfectly inelastic at very low prices. D) It is unit elastic throughout the demand curve.
Private ownership of a monopoly may benefit society because the monopoly will have an incentive to
a. charge a price that is consistent with that of a benevolent social planner. b. charge a price that prevents some people from buying. c. price its good according to the intersection of marginal cost and average revenue. d. lower its costs to earn a higher profit.
U.S. Gross National Product includes goods produced by:
A. foreign firms on foreign soil. B. foreign firms on U.S. soil. C. U.S. firms on foreign soil. D. None of these statements is true.