When economy-wide business fluctuations are negative, they are referred to as
A) contractions/recessions.
B) booms.
C) expansions.
D) peaks.
A
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Marginal revenue, graphically, is
A) the slope of a line from the origin to a point on the total revenue curve. B) the slope of a line from the origin to the end of the total revenue curve. C) the slope of the total revenue curve at a given point. D) the vertical intercept of a line tangent to the total revenue curve at a given point. E) the horizontal intercept of a line tangent to the total revenue curve at a given point.
A gas station opened up on the highway in a patch where there are no gas stations close by. It is more likely to be able to set higher prices because
a. the demand for its product is more inelastic due to an unavailability of substitutes b. the demand for its product is more elastic due to an unavailability of substitutes c. the demand for its product is more inelastic due to an availability of substitutes d. the demand for its product is more elastic due to an availability of substitutes
The price elasticity of demand for tickets to local hockey matches is estimated to be equal to 0.89 . In order to boost ticket revenues, an economist would advise:
a. decreasing the price of hockey match tickets because demand is elastic b. increasing the price of hockey match tickets because demand is elastic. c. not changing the price of hockey match tickets because demand is unit elastic. d. increasing the price of hockey match tickets because demand is inelastic.
When businesses cooperate and agree to hold prices high, it is called ________, and when they reach a noncooperative equilibrium it is called ________.
A. commitment strategy; collusion B. collusion; commitment strategy C. collusion; competition D. competition; collusion