When the demand for a good is perfectly elastic, ________
A) total revenue is as large as possible
B) the demand curve for the good is vertical
C) the price elasticity of demand is infinite
D) the price elasticity of demand is zero
C
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If MSC = 20 + 0.75A, where MSC is in millions of dollars, and A is the percentage of mercury emissions abatement, then
a. the total social costs of abatement equal $184 million when A is 8 percent b. the TSC at an abatement level of 10 percent is $27.5 million c. a 40 percent abatement level is associated with MSC of $30 million and TSC of 20 million d. TSC cannot be determined at any abatement level
Tight monetary policy will ________ net exports as a result of a ________ currency.
A. increase; weaker B. increase; stronger C. decrease; stronger D. decrease; weaker
The "greenhouse effect" is predicted to
a. lead to the next ice age. b. raise global temperature. c. pollute the oceans. d. break the edifice complex by the turn of the century.
Whenever the absolute value of the price elasticity of demand is greater than 1, but less than infinite
A) demand is inelastic. B) demand is unit elastic. C) demand is elastic. D) demand is perfectly elastic.