When a firm’s fixed costs increase it should raise its prices in order to maximize profits.
Answer the following statement true (T) or false (F)
False
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Monopolistic competition, like perfect competition, is a market structure in which firms can easily enter and leave the industry
a. True b. False Indicate whether the statement is true or false
If you pay a very high price for a good or service, you _____ (are/are not) getting ripped off.
Fill in the blank(s) with the appropriate word(s).
Suppose that OPEC currently sets the oil price at $1.50 per gallon, and the current consumption is 100 million gallons per day. The price elasticity of demand for oil is estimated to be 0.7 by the initial value method. If OPEC raises the oil price to $1.80 per gallon:
A. quantity demanded decreases by 10 million gallons while total sales revenue increases by $4.4 million per day. B. quantity demanded decreases by 14 million gallons while total sales revenue increases by $4.8 million per day. C. quantity demanded decreases by 10 million gallons and total sales revenue decreases by $4.4 million per day. D. quantity demanded decreases by 14 million gallons and total sales revenue decreases by $4.8 million per day.
In Ansonia, real GDP increased by 9% and the population increased by 9% in 2018. In 2018, Ansonia experienced
A. economic growth, but not an increase in living standards. B. economic growth and an increase in living standards. C. no economic growth and no increase in living standards. D. no economic growth, but an increase in living standards.