A price increase will cause an increase in total revenue when:
A. the price effect outweighs the quantity effect.
B. demand is perfectly elastic.
C. demand is unit elastic.
D. the quantity effect outweighs the price effect.
Answer: A
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Critically evaluate the following statement. "Monopolists are able to pass on the full amount of any increase in their fixed cost to the consumer in the form of higher prices."
What will be an ideal response?
Everything else held constant, a monetary expansion is characterized by ________ output and ________ interest rates
A) rising; rising B) rising; falling C) falling; rising D) falling; falling
For a profit maximizing monopolist, if the MC = 10 and price is set to be 20, then the elasticity at this price is
A) -2. B) -1. C) -0.5. D) 0.
Explain exchange rate crisis
What will be an ideal response?