If the demand curve is vertical, the elasticity is
A. 1.0.
B. 0.0.
C. 0.5.
D. infinite.
Answer: B
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Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $18
A) there will be a surplus; as a result, the price will fall to $7. B) Marko's will produce four shirts. C) producer surplus from the first shirt is $18. D) producer surplus will equal $22.
Explain why asymmetric information can cause the real interest rate to increase, and why increases in the real interest rate can actually make lending more risky for financial institutions
What will be an ideal response?
The marginal rate of return on investment is found by dividing the marginal resource cost per year by the marginal revenue product
a. True b. False
What rule must be followed to obtain an efficient allocation of resources?
a. P = AC. b. P = MC. c. P = AR. d. MR = AC.