If the marginal cost of adding a new line of products is $10 million, then Amazon should add the product
What will be an ideal response?
if marginal benefits are more than $10 million.
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If the price elasticity of demand for gasoline equals 0.3, then an increase in the price of a gallon of gasoline from $3.70 to $3.90
A) decreases total revenue. B) increases total revenue. C) leads to no change in total revenue. D) makes the demand for gasoline elastic. E) Both answers B and D are correct.
Token money is money whose face value exceeds its cost of production
Indicate whether the statement is true or false
If Jay receives a pay cut and the price effect outweighs the income effect on his labor supply decisions, he will work:
A. zero hours. B. more hours. C. the same amount. D. less hours.
In response to the destructive bank panics of the Great Depression, future bank panics are designed to be prevented by
A) the Federal Reserve System conducting open market operations. B) the establishment of the Federal Deposit Insurance Corporation. C) establishing a fractional reserve system of banking. D) increasing the required reserve ratio to 100%.