The demand curve is:
A. a downward-sloping line that reflects the inverse relationship between price and quantity.
B. an upward-sloping line that reflects the inverse relationship between price and quantity.
C. a downward-sloping line that reflects the positive relationship between price and quantity.
D. an upward-sloping line that reflects the direct relationship between price and quantity.
A. a downward-sloping line that reflects the inverse relationship between price and quantity.
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Mike's Pretzels employs labor at a wage rate of $8 per hour and rents capital for $20 per hour. At its current level of labor and capital, the marginal product of labor is 24 and the marginal product of capital is 55
Is the firm currently maximizing profit? Explain.
In the long run, competitive firms MUST be profit maximizers because if they do not maximize profits,
A) they will not survive. B) they will not be price takers. C) they will attract entry. D) the profits that they do earn will only cover variable costs.
What factor has the greatest influence on elasticity and inelasticity of supply?
a. profit b. labor c. time d. financing
In game theory, actions such as cheating that focus solely on short-run gains are referred to as
A. predatory behavior. B. opportunistic behavior. C. tit-for-tat strategic behavior. D. territorial behavior.