Applying a uniform markup to each of a firm's products is less profitable than varying the markup based on the elasticity of demand because the latter is able to exploit the sensitivity of quantity demanded to a change price
Indicate whether the statement is true or false
TRUE
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Which of the following is NOT a reason people tolerate tariffs and quotas?
A) Ignorance B) Their personal jobs depend on tariffs and quotas. C) Costs may be hidden and hard to quantify. D) Costs of the policy are spread over a large number of people. E) The marginal expenses to fight the protection outweigh the personal marginal costs of the protection.
Refer to Table C_6. Assuming MPC=0.75, the break-even level of disposable income=____. (Do not enter a $ sign. Include a negative sign, if a negative number)
Which of the following causes a shift from E3 to E4?
a. price increase in the long run
b. price increase in the short run
c. price decrease in the long run
d. price decrease in the short run
If a purely competitive firm is producing at the MR = MC output level and earning an economic profit, then:
A. the selling price for this firm is above the market equilibrium price. B. new firms will enter this market. C. some existing firms in this market will leave. D. there must be price fixing by the industry's firms.