Along a linear demand curve, total revenue is maximized when demand is
a. elastic
b. inelastic
c. unit elastic
d. perfectly elastic
e. perfectly inelastic
C
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In tacit collusion, price visibility ________ the cost of cheating and ________ the temptation to cheat.
A) decreases; increases B) increases; increases C) decreases; decreases D) increases; decreases
How does the production of a U.S. firm located in France affect U.S. GDP? How does the production of a French firm located in Ohio affect U.S. GDP?
What will be an ideal response?
If peanut butter and jelly are complements, but peanut butter and tuna fish are substitutes,
a. an increase in the price of peanut butter will increase the demand for jelly. b. an increase in the price of peanut butter will decrease the demand for jelly. c. an increase in the price of peanut butter will decrease the demand for tuna fish. d. a decrease in the price of peanut butter will increase the demand for tuna fish.
Cindy discovers that when she goes to the beach, she does not have to bring her radio. She can put her blanket near someone who has a radio and listen all day (without having to carry her radio, get sand in her speakers, or buy new batteries). This is an example of:
A. private property abuse. B. external costs. C. a negative externality. D. a positive externality.