A demand elasticity coefficient is a measure of the sensitivity of quantity demanded to a change in one of the determinants of demand
Indicate whether the statement is true or false
TRUE
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When its marginal cost increases, a firm aiming at maximizing net revenue
A) can always raise its price, but only by the amount of the cost increase. B) can often raise its price by more than the cost increase. C) can raise its price, but always by less than the cost increase. D) may not be able to raise its price at all.
Compared to the United States, health care spending per person in other high-income countries has been
A) declining at approximately the same rate. B) growing at a slower rate. C) growing at a faster rate. D) growing at approximately the same rate.
A good is inferior for a consumer if
A) it is never included in his or her consumption bundle. B) its consumption rises when income rises. C) its consumption falls when income rises. D) some minimal level of the good must be consumed to assure the consumer's survival.
If the average cost of a product is $10 per unit and the price is $5, the firm is losing money.
Answer the following statement true (T) or false (F)