The price elasticity of demand for a good measures the responsiveness of:
A. quantity demanded to a one percent change in price of that good.
B. price to a one percent change in the demand for that good.
C. price to a one percent change in the quantity demanded of that good.
D. demand to a one percent change in price of that good.
Answer: A
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Firms in perfectly competitive industries are unable to control the prices of te products they sell and are unable to earn a profit in the long run. Which of the following is one reason for this?
All secondary trading of municipal bonds occurs
A) through commercial banks. B) in the over-the-counter market. C) through life insurance companies. D) in the New York Municipal Bond Market.
Break-even analysis usually assumes all of the following except:
a. in the short run, there is no distinction between variable and fixed costs. b. revenue and cost curves are straight-lines throughout the analysis. c. there appears to be perfect competition since the price is considered to remain the same regardless of quantity. d. the straight-line cost curve implies that marginal cost is constant. e. both c and d
A unique feature of oligopolies, when compared with other industry types, is:
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