Which of the following indicates a fall in revenue?
a. Price decreases 20%; quantity demanded increases 25%.
b. Price decreases 15%; quantity demanded increases 8%.
c. Price decreases 5%; quantity demanded increases 10%.
d. Price decreases 12%; quantity demanded increases 15%.
b. Price decreases 15%; quantity demanded increases 8%.
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Suppose your college sharply raises tuition rates next year. Other things constant, what is the least likely to occur?
A) The overall demand for courses at your college will fall. B) Your college bookstore will sell fewer textbooks. C) It will be easier to find parking at your college. D) Fewer students will use your college library.
In the above figure, the intersection of curves A and B is the point at which
A) average total cost is minimized. B) average variable cost is minimized. C) average fixed cost is minimized. D) total product is maximized.
The excess burden of an excise tax is
a. greater the more inelastic the supply curve. b. greater the more elastic the demand curve. c. smaller the more elastic the supply curve. d. greater the more inelastic the demand curve.
Marginal benefit refers to:
A. the average benefits that arise by using an additional unit of the managerial control variables. B. the change in average benefits arising from a change in the control variable. C. the additional benefits that arise by using an additional unit of the managerial control variables. D. None of the statements associated with this question are correct.