To maximize sales revenue, an oligopolist will expand output until the elasticity of demand becomes
a. negative.
b. zero.
c. one.
d. infinite.
c
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A household that expects a decrease in disposable income in the future will _____
a. increase its current consumption spending b. decrease its current consumption spending c. maintain its current consumption spending d. first increase its current consumption spending and then decrease spending when income falls e. first decrease its current consumption spending and then increase spending when income falls
Direct incentive
What will be an ideal response?
Which of the following affects demand for money?
A) prices B) nominal income C) interest rate D) all of the above E) none of the above
What effect would taxation have on real consumption spending when government spending is autonomous?
A. Taxation increases real consumption spending. B. Taxation reduces real consumption spending. C. Taxation causes both real consumption spending and planned real saving to increase. D. None of these is correct.