Which of the following equations accurately shows a total revenue decrease when demand is price elastic?
a.
b.
c.
d.
b.
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The theory that nominal exchange rates are determined so that the law of one price holds is called:
A. the law of supply and demand. B. the equilibrium principle. C. purchasing power parity. D. the fixed-exchange-rate rule.
Which of the following statements is NOT true about the rationing of goods?
A) Goods can only be rationed by price. B) Goods can be rationed on a first come first serve basis. C) Goods can be rationed by random. D) Goods can be rationed by the use of coupons.
The theory of monopolistic competition predicts that in long-run equilibrium a monopolistically competitive firm will:
a. produce the output level at which price equals long-run marginal cost. b. operate at minimum long-run average cost. c. overutilize its insufficient capacity. d. produce the output level at which price equals long-run average cost.
The key to understanding the movement in stock prices is to understand
A) expectations. B) market share. C) accounting profits. D) the firms contribution to the social welfare of its employees.