Suppose that quantity demand rises by 10% as a result of a 15% decrease in price. The price elasticity of demand for this good is
a. inelastic and equal to 0.67.
b. elastic and equal to 0.67.
c. inelastic and equal to 1.50.
d. elastic and equal to 1.50.
a
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Profit maximizing firms in competitive industries with free entry and exit face a price equal to the lowest possible
a. marginal cost of production. b. fixed cost of production. c. total cost of production. d. average total cost of production.
As opposed to corporate strategy, business strategy is focused on
A. how to compete with other firms in the industry. B. the type of industry to produce in. C. the type of production technique to use. D. increasing the elasticity of consumer demand.
The exploitation of what resource supplied more than half of the increase in mechanical energy in 1860–1910?
(a) Petroleum (b) Water power (c) Anthracite coal (d) Bituminous coal
Suppose that only 2 percent of all people are geniuses. If an IQ test indicates that Albert is a genius, but the test is only accurate 90 percent of the time, then the probability that Albert really is a genius is roughly:
A. 18 percent. B. 16 percent C. 10 percent. D. 2 percent.