So long as the absolute value of the price elasticity of demand for a firm's output is greater than 0, the firm's optimal markup factor will be positive as well
Indicate whether the statement is true or false
FALSE
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The supply curve for loanable funds would increase due to a(n)
A) increase in wealth. B) increase in expected inflation. C) decrease in the liquidity of bonds relative to other assets. D) increase in the information costs of bonds relative to other assets.
An increase in demand could be caused by
a. a decrease in price b. a decrease in income, assuming the good is inferior. c. buyers expecting the price of the good to fall in the near future. d. an increase in the price of a complement.
Suppose a country experiences a change in weather patterns that makes farming more difficult. Which curve(s) in the aggregate demand and aggregate supply model would be affected, and which way would it (they) shift?
For fiscal policymakers, one of the results of an independent central bank is:
A. fiscal policymakers cannot borrow unless the Federal Reserve prints more money. B. fiscal policymakers always have to borrow to increase spending. C. increased government spending has to be financed with either higher taxes or increased government borrowing. D. to finance government spending the Treasury has to order more currency from the central bank.