When demand is unit elastic, a change in price causes total revenue to stay the same because
A) the percentage change in quantity demanded exactly offsets the percentage change in price.
B) buyers are buying the same quantity.
C) total revenue never changes with price changes.
D) the change in profit is offset by the change in production cost.
Answer: A
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Which of the following is TRUE regarding a perfectly competitive firm?
A) The firm can charge a lower price than its competitors and thereby sell more output and increase its profits. B) The firm always earns a normal profit. C) The firm's marginal revenue continually decreases. D) The firm's minimum efficient scale is small relative to the market demand.
Economic profit
a. will never exceed accounting profit. b. is most often equal to accounting profit. c. is always at least as large as accounting profit. d. is a less complete measure of profitability than accounting profit.
The characteristic growth pattern known as satelliting is associated with
People who are fans of NASCAR tend to eat less organic produce than people who are not NASCAR fans. This is an example of
A. causation. B. correlation. C. statistical significance. D. difference-in-differences.