A firm produces and sells two goods, A and B. Good A is known to have many close substitutes; good B makes up a significant portion of most families' budgets. A price increase for each good would most likely cause total revenues for good A to:
A. increase, and total revenues for good B to increase.
B. increase, and total revenues for good B to decrease.
C. decrease, and total revenues for good B to decrease.
D. decrease, and total revenues for good B to increase.
Answer: C
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For country A, an import is a good produced in
A) country A and purchased by residents of country B. B) country A and purchased by residents of country A. C) country B and purchased by residents of country A. D) country B and purchased by residents of country B.
Which of the following would be most likely to enhance the growth rate of an economy
What will be an ideal response?
Suppose a monopolist has TC = 40 + 10Q + Q2, and the demand curve it faces is p = 130 - 2Q. What is the monopolist's total cost (TC) at the profit-maximizing level of output?
A) TC = 320 B) TC = 640 C) TC = 720 D) TC = 840
What is one way firms can enforce tie-in sales?
A) One of the goods has no close substitutes. B) contractual arrangements C) information asymmetry D) Any of the above.