Firms develop brand names in order to make the demand for their product more elastic
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Monopoly Problem. The equation for this monopolist’s marginal revenue is
Consider a monopoly with constant marginal costs of $20. Consumers in the market for this monopoly’s product have demand of Q = 100 - 2P. a. MR = 100 - 2P b. MR = 100 - 4P c. MR = 50 - 0.5Q d. MR = 50 - Q
If marginal cost exceeds average variable cost but is less than average total cost, then as output increases average total cost ________ and average variable cost ________
A) increases; decreases B) decreases; decreases C) increases; increases D) decreases; increases
According to the flexible price framework ________
A) an increase in inflation raises real savings B) an increase in the money supply raises real output C) an increase in inflation lowers real investment D) all of the above E) none of the above
If a firm in a perfectly competitive market faces a market price of $7, and it decides to increase its production from 4,000 to 12,000 units, the firm's marginal revenue will:
A. stay the same. B. rise once diminishing marginal product sets in. C. increase from $28,000 to $84,000. D. diminish once diminishing marginal product sets in.