Sellers who lower their prices and consequently sell a larger quantity earn more
A) gross (or total) revenue as a result.
B) gross revenue only if the demand is elastic.
C) net and gross revenue if the demand is inelastic.
D) net revenue (revenue minus cost) as a result.
B
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In ________ market structure, a firm's output depends ________
A) an oligopoly; only on its own marginal revenue and marginal cost curves B) a monopolistically competitive; in part on its competitors' price and quantity decisions C) an oligopoly; in part on its competitors' price and quantity decisions D) a monopolistically competitive; only on its marginal revenue curve
A bank can safely lend an amount equal to its
A) excess reserves. B) required reserves. C) vault cash. D) total reserves.
If Alan is risk-averse, then he will always
a. choose not to play a game where he has a 50 percent chance of winning $5 and a 50 percent chance of losing $5. b. choose not to play a game where he has a 75 percent chance of winning $5 and a 25 percent chance of losing $5. c. choose to play a game where he has a 55 percent chance of winning $5 and a 45 percent chance of losing $5. d. All of the above are correct.
Suppose you have surveyed a few industries and obtained information about the income elasticity of demand for their products
If you expect that the economy is headed for a long recession, you would advise people to look for jobs in an industry with A) a "low" negative income elasticity coefficient such as -0.2. B) a high positive income elasticity coefficient such as 5. C) a low positive income elasticity coefficient such as 0.8. D) a "high" negative income elasticity coefficient such as -4.