A monopolist produces in the elastic segment of its demand curve because when it lowers the price
A. the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue increases.
B. the percentage change decrease in quantity demanded is less than the percentage change decrease in price and total revenue increases.
C. the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue decreases.
D. the percentage change increase in quantity demanded is less than the percentage change decrease in price and total revenue increases.
Answer: A
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Differences in price levels
A) explain well actual exchange rate movements. B) are not capable of explaining well actual exchange rate movements, particularly in the short run. C) have been small for most countries in the post-World War II period. D) only can be explained by the fact that little foreign trade actually takes place.
Stockholders manage risk by
A) electing the board of directors. B) appointing day-to-day managers. C) diversifying their portfolios. D) having lots of bonds in their portfolios.
The cost incurred when the government collects taxes and uses resources to provide goods and services include:
a. the opportunity cost of the resources used b. the excess burden of the tax c. both of the above d. neither of the above
Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange?
A. M1 B. M2 C. Neither M1 nor M2 D. M1 and M2