When demand is perfectly elastic, marginal revenue is
A) zero.
B) equal to price.
C) declining.
D) increasing.
Answer: B
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According to the authors of your text,
A) society could continue to exist even if people were totally selfish. B) genuine concern for the well-being of others is essential if any social cooperation at all is to occur. C) anarchism, or a society without a coercive government, is the only socio-political system consistent with free markets. D) rules are necessary for government institutions, but not for market institutions.
One advantage of user charges is they _____
a. increase with inflation b. they apply the ability-to-pay principle of taxation c. help ration consumption of the taxed good d. a and c
Most companies that sell CDs by mail deliver in 1 to 2 weeks. Mosey Music, Inc, takes 4 weeks to deliver CDs. We should expect that Mosey Music
a. will lose all its customers b. will not lose customers because the good in question is CDs, not the delivery date c. will have to charge more for its CDs to make up for the business it loses through slow delivery d. will have to charge less for its CDs to compete with firms that deliver CDs faster e. will be able to charge the same amount for its CDs as other firms do, as long as the CD quality is the same
All of the following are possible outcomes of a financial crisis EXCEPT
A) bank failings and disintermediation. B) a recession. C) an increase in domestic consumption. D) depreciation or devaluation of a currency.