In a perfectly competitive industry, the price of good A is $2 . If a firm in this industry decides to increase its price to $2.50, it will:
a. realize an increase in profit of $0.50 per unit output.
b. be able to increase the quantity sold of good A.
c. be unable to sell any quantity of good A that is produced.
d. lose some of its customers in the market.
e. experience a decrease in profit of $0.50 per unit output.
c
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Asymmetric information will always cause
A) efficiency problems. B) equity problems. C) Both A and B. D) None of the above.
When very few substitutes for a good exist, demand will be
A) elastic. B) unit-elastic. C) inelastic. D) perfectly elastic.
GDP is most often discussed using _______ figures, although it is typically calculated _______.
A. annual; quarterly B. annual; monthly C. quarterly; monthly D. quarterly; annually
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What will be an ideal response?