If in the short run the demand for mass transit is inelastic and in the long run the demand is elastic, then a price:
A. Increase will decrease total revenue in the short run but increase total revenue in the long run
B. Increase will increase total revenue in the short run but decrease total revenue in the long run
C. Decrease will increase total revenue in the short run but decrease total revenue in the long run
D. Decrease will decrease total revenue in the short run and decrease total revenue in the long run
B. Increase will increase total revenue in the short run but decrease total revenue in the long run
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A firm's managers need information on the firm's revenue and costs as well as information on the value of a firm's assets and the amount of the firm's debts to answer three basic questions
Which of the following is not one of those three basic questions? A) how to produce it? B) where to produce? C) what to produce? D) what price to charge?
Employing a lawyer to draft and enforce a private contract between parties wishing to solve an externality problem is an example of
a. an opportunity cost. b. an implicit cost. c. a sunk cost. d. a transaction cost.
You sell cupcakes. One day you double the time you spend and double all your inputs, and make twice as many cupcakes. Your cupcake production function has
a. decreasing returns to scale. b. zero returns to scale. c. constant returns to scale. d. increasing returns to scale.
The self-control hypothesis suggests that people:
A. control their spending in order to save more when the real interest rate increases. B. substantially decrease their saving when the real interest rate increases. C. base their spending decisions (and consequently their saving decisions) on spending decisions of others. D. want to save, but lack the discipline to refrain from consuming.