If demand is price inelastic, a decrease in price
a. raises total revenue to the seller
b. raises total expenditure on the good, but not total revenue to the seller
c. reduces total revenue to the seller
d. leaves total revenue to the seller unchanged
e. leaves total expenditure on the good unchanged
C
You might also like to view...
For resource use to be allocatively efficient, when the marginal benefit of a slice of pizza exceeds the marginal cost,
A) more slices of pizza should be produced. B) fewer slices of pizza should be produced. C) no more slices of pizza should be produced. D) allocative efficiency is reached only if the marginal benefit exceeds the marginal cost by as much as possible. E) None of the above answers is correct.
The monopolist will maximize profits at the output level for which:
A. marginal revenue equals marginal cost. B. price equals average total cost. C. marginal revenue equals average total cost. D. price equals marginal cost.
An external benefit is the benefit experienced by people who:
A. do not decide how much of the good to produce or consume. B. did not know why they are experiencing the benefit. C. decide how much of the good to produce or consume. D. consume the good.
If the slopes of the production possibility frontiers involving sugar and rice in countries A and B are equal
A. each country will produce identical quantities of sugar and rice. B. the opportunity cost of producing sugar is less in Country A. C. specialization does not benefit either country. D. the opportunity cost of producing rice is less in Country B.