At the rate of output where a monopolist's marginal revenue equals zero, what is the price elasticity of demand for the monopolist's product or service?
a. Zero
b. Unitary
c. Infinity
d. Indefinite
b
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Assume that it is predicted that for the years after you graduate from college, the entire economy will experience a long period of prosperity when incomes grow rapidly
What type of industry would be the best for you to find employment if this prediction is correct? An industry that produces a product that is A) income elastic. B) income inelastic. C) inferior. D) a substitute good. E) none of these industries
Other things constant, the quantity of money demanded varies directly with the market interest rate
Indicate whether the statement is true or false
In order to be successful in a market economy, entrepreneurs must
a. combine resources in a manner that increases their value. b. produce a good that consumers value less than the resources used to produce it. c. use only personal financial capital so they can avoid interest payments on borrowed funds. d. produce anything that consumers value, regardless of cost.
In general, supply curves slope upward because:
A. the government requires that more units be produced. B. rising prices provide producers with a greater profit incentive. C. consumers buy a greater quantity. D. technology improves the ability of firms to produce more at each possible price.