If a firm raises the price of its product, its total revenue will
a. always increase
b. increase only if demand is price inelastic
c. increase only if demand is price elastic
d. remain constant, regardless of price elasticity of demand
e. never increase
B
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Changes in the real interest rate affect all of the following components of aggregate expenditure except
A) consumption. B) investment. C) government purchases. D) net exports.
Rivalry among firms would tend to be high if
a. Customers are locked into the competitors technology b. Customers can easily switch between competitor's technologies c. All of the above d. None of the above
If a person is going to borrow $30,000 for a car and pay it off with a constant mortgage payment every month for 5 years, what do you know about their car payment (if the interest rate is positive)?
A. The payment is more than $500 per month. B. Nothing. C. The payment is exactly than $500 per month. D. The payment is less than $500 per month.
Compared to a monopolistically competitive firm having the same cost curves, a perfectly competitive firm produces ________ output and charges a ________ price.
A. less; higher B. more; lower C. more; higher D. less; lower