Absolute price elasticities are calculated for four goods, and the values are: 0.009; 1.0; 3.5; and 4. Which indicates the most price-responsive situation?
A) 0.009
B) 1.0
C) 3.5
D) 4.0
Answer: D
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Nonprofit, or not-for-profit, firms
a. maximize revenue instead of profit b. minimize cost rather than maximize profit c. often pursue goals other than profit maximization d. pursue profit as their main goal despite their name e. have no incentive to produce efficiently
Internal markets
A) are used to determine a transfer price. B) are common in corporate America. C) are part of a firm's vertical network. D) all of these choices.
The term "unit elasticity" is used to describe a situation in which a rise in price is accompanied by
a. a fall in total expenditure. b. a rise in total expenditure. c. constant total expenditure. d. a unit decrease in total expenditure.
Other things the same, as the price level rises,
a. the dollar depreciates. b. the interest rate falls. c. people feel less wealthy. d. All of the above are correct.