In the above figure, if the market price is less than $7, the firm
A. produces 10 units.
B. produces 0 units.
C. produces 8 units.
D. produces 11 units.
Answer: B
You might also like to view...
The term inflation is used to describe a(n): a. rise in the value of money
b. decline in nominal income. c. sustained increase in the price level. d. general reduction in prices. e. economic problem faced only by the elderly population.
Which of the following statements in the context of poverty in the U.S. is true?
a. Families headed by males are likely to be poor. b. Caucasian Americans carry a much heavier burden of poverty compared to the native Americans. c. Education and technical skills do not affect employment in the United States of America. d. Females tend to have a greater literacy rate than males in the United States of America. e. Minorities, young and disabled have a higher likelihood to fall into poverty
Suppose that ABC Beer Brewer faces a linear demand curve and that the current price for its beer is set at a point where the price elasticity is 1.6. If ABC Beer Brewer increases the product price:
A. the demand becomes more elastic and total revenue increases. B. the demand becomes less elastic and total revenue increases. C. the demand becomes more elastic and total revenue decreases. D. the demand becomes less elastic and total revenue decreases.
If demand for a good is perfectly inelastic, then
A) a price increase would cause a fall in quantity demanded. B) a price increase would cause no change in quantity demanded. C) a price increase would cause an increase in quantity demanded. D) a price increase would cause a fall in total revenue.