The demand curve for a perfectly competitive industry is
A) perfectly inelastic.
B) downward sloping.
C) perfectly elastic.
D) unit elastic.
Answer: B
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Which of the following will lead to an increase in the quantity of money demanded?
a. A decrease in the overall level of wealth in the economy b. A decrease in the price level c. A decrease in nominal income d. An increase in real income e. A decrease in real income
Which of the following statements is false?
A) Economic profit will always be less than accounting profit if resources owned and used by the firm have any opportunity costs. B) Economic costs include the opportunity costs of the resources owned by the firm. C) Accounting profit is equal to total revenue minus implicit costs. D) Accounting costs typically include only explicit costs.
The cookie company in the mall hires workers to produce cookies. The workers are paid $75 per day, and the cost of renting the space in the mall is $250 per day. If two workers are hired, the variable costs are
a. $75 b. $100 c. $150 d. $200
Refer to the figure above. Suppose Starbucks charges $3.50 per cup for its latte. Which of the following is true?
i. At this price, the demand for Starbucks latte is inelastic. ii. If Starbucks raises the price of its latte, its revenue will increase. iii. If Starbucks lowers the price of its latte, it will increase its revenue. A) Only iii B) Only i C) Only ii D) i and ii E) i and iii