Total revenue decreases if price ________ and demand is ________.
A. falls; elastic
B. falls; unit elastic
C. rises; elastic
D. rises; inelastic
Answer: C
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Refer to the table below. If Stuffed Pies is currently producing 5 units of quality, to maximize profit, Stuffed Pies should ________ the units of quality.
Stuffed Pies is a frozen calzone manufacturer. The table above summarizes Stuffed Pies' marginal revenue and marginal cost of quality at various quality amounts.
A) decrease
B) not change
C) increase
D) decrease by 50 percent
Consider two straight-line PPFs. They have the same vertical intercept, but curve I is flatter than curve II. The opportunity cost of producing the good on the horizontal axis
A) is greater along curve I. B) is greater along curve II. C) is the same along both curves. D) cannot be compared for the two curves without more information.
Look at this producer surplus graph. If Caroline is already producing wheat at P1, what happens when the price moves to P2?
a. Her producer surplus will decrease.
b. Her producer surplus will increase.
c. Nothing happens because she is already producing at a lower price.
d. She will have to produce more to make the same total profit.
Measured between two points on a curve, the ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis is the:
A. axis. B. slope. C. dependent curve. D. independent curve.