John's Bait Shop was surprised to learn that when it raised prices by 10 percent, total revenue was unaffected. This is because the elasticity for bait is
a. unit elastic.
b. inelastic.
c. elastic.
d. Not enough information is given.
a
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When firms exit a perfectly competitive industry, the market supply curve shifts to the left
Indicate whether the statement is true or false
The discount rate is influenced by Fed actions whereas the Fed sets the federal funds rate
Indicate whether the statement is true or false
Suppose the firms in a monopolistically competitive market are incurring economic losses. What will happen to move the market to its long-run equilibrium?
A) More close substitutes will appear in the market until economic profits are zero. B) The firms that dropped out of the market will reenter once the level of economic losses is zero. C) Firms will continue to exit the market until economic losses are equal to zero. D) The demand functions of all the firms remaining in the market will become relatively more elastic.
For a monopolist, at the profit-maximizing level of output price is:
A. equal to marginal revenue. B. equal to marginal cost. C. chosen according to demand. D. constant.