The short run is a period of time during which _____
Fill in the blank(s) with the appropriate word(s).
resource buyers and sellers cannot adjust fully to changes in the price level.
You might also like to view...
A tax imposed by a state or local government on retail sales of most products is
A) an excise tax. B) a sales tax. C) a consumption tax. D) a social service tax.
In the saving function, autonomous saving is
A) -a + (1 - c)(Y - T). B) (1 - c)Y. C) -a. D) -Y - T.
Efficiency in the choice of outputs requires that marginal cost be equal to marginal revenue and nothing else
a. True b. False Indicate whether the statement is true or false
Assume that several firms compete in the market for cellular phones and that the price elasticity for this industry is equal to 0.75. Based on this information, would you advise a firm in this industry to increase its price? If so, what is the percentage loss in total sales this firm should expect to experience?
A. Definitely no. Each 1 percent increase in price would result in 7.5 percent reduction in total sales, negatively affecting total revenues. B. Definitely yes. Total revenues would increase as sales would decrease by only .75 percent for each 1 percent increase in price. C. Not enough information is provided to make a sound decision. For the same reason, it is not possible to predict what the loss in sales for one firm would be. D. Definitely no. Each 1 percent increase in price would result in 7.5 percent reduction in total sales, affecting total revenues positively.