Using the midpoint method to calculate the price elasticity of demand eliminates the problem of computing:
A) total revenue when price falls and demand is elastic.
B) total revenue when price falls and demand is inelastic.
C) different elasticities, depending on whether price decreases or increases.
D) different elasticities, because price and quantity are inversely related on the demand
curve.
C) different elasticities, depending on whether price decreases or increases.
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The key characteristics of a monopolistically competitive market structure include
A) many small (relative to the total market) sellers acting independently. B) barriers to entry are strong. C) all sellers sell a homogeneous product. D) sellers have no incentive to advertise their products.
A business incurs the following costs per unit: Labor $125/unit; Materials $45/unit and rent $250,000/month. If the firm produces 1,000,000 units a month, the total costs equal
a. $125,250,000 b. $170,250,000 c. $125,050,000 d. $170,050,000
In 1911, the Supreme Court established the rule of reason. This rule held that
a. the Sherman Antitrust Act made only unreasonable restraints of trade illegal. b. the Court was entering a new deductive stage of reasoning. c. the Sherman Antitrust Act made the mere size of a firm an offense. d. All of these.
If there is a shift of international trade away from a country's products, we can expect that the FE and IS curves will shift to the ________, the overall payments balance will move toward ________, and the domestic currency will
A. right; surplus; appreciate. B. right; deficit; appreciate. C. left; deficit; depreciate. D. left; surplus; depreciate.