All of the following are true regarding the relationship between price elasticity of demand and total revenues EXCEPT
A. when market demand is inelastic, if the market price falls, then total revenues will decrease.
B. when market demand is unit elastic, if the market price rises, then total revenues will not change.
C. when market demand is elastic, if the market price declines, then total revenues will rise.
D. when market demand is inelastic, if the market price rises, then total revenues will decrease.
Answer: D
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Fill in the blank. A(n) ________ market requires perfect and complete information among all participants
A) monopolized B) oligopolized C) perfectly competitive D) effective
Given the situation in the matrix shown, we can predict that Firm A's profits will be:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. $50 million.
B. $100 million.
C. $200 million.
D. $300 million.
The price of a coupon bond is determined by taking the present value of:
A. all of the bond's payments. B. the coupon payments and adding this to the face value. C. the bond's final payment and subtracting the coupon payments. D. the bond's final payment.
The term "laissez faire" suggests that:
A) government should not interfere with the operation of the economy., B) land and other natural resources should be privately owned, but capital should be publicly owned. C) land and other natural resources should be publicly owned, but capital equipment should be privately owned D) government action is necessary if the economy is to achieve full employment and full production.