The price elasticity of demand
a. is of no use to producers
b. tells producers what will happen to total profit if they change product price
c. tells producers what will happen to quantity supplied if they change product price
d. tells producers what will happen to total revenue if they change product price
e. tells producers what will happen to price in the following time period
D
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The cost to a physician of tending a patient is
A) dependent on the number of years over which the physician practices. B) higher for a recent medical-school graduate than for a physician with a well-established practice. C) the value of the time when spent in its next best use. D) zero under a system of complete and comprehensive medical insurance.
Which of the following inputs is normally considered to be fixed in the short run?
A) labor B) capital C) money D) All of the above.
If a firm is producing an output rate at which marginal cost is equal price, the firm
A) is maximizing profits. B) should increase its output level. C) should reduce its output level. D) will not be covering its fixed cost.
Which of the following is one reason for the decline in aggregate demand that led to the recession of 2007-2009?
A) falling oil prices B) an increase in net exports C) the end of the housing bubble D) a decline in government spending