Consider the straight-line demand curve illustrated in the figure above. At a price of $6, demand is
A) inelastic.
B) elastic.
C) unit elastic.
D) More information is needed to determine if the demand is elastic, unit elastic, or inelastic.
B
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Average total cost:
A. decreases when output levels are low, then increases as output increases. B. increases when output levels are low, then decreases as output decreases. C. is minimized when it equals average variable cost. D. is maximized when it equals marginal cost.
If the government grants patents to three different firms that produce a drug for diabetes, then the three firms may lead to the creation of: a. a monopoly
b. an oligopoly. c. monopolistic competition. d. perfect competition.
Considering the spectrum of market structures and moving from pure competition to pure monopoly we can say that
A) entry barriers get lower but exit gets more difficult. B) entry becomes harder but exit becomes easier. C) entry gets harder and the number of firms dwindles. D) none of the above.
All of the following are advertisement methods EXCEPT
A) direct marketing. B) mass marketing. C) indirect marketing. D) interactive marketing.