When the quantity effect outweighs the price effect:
A. a price increase will cause an increase in total revenue.
B. a price increase will cause a decrease in total revenue.
C. a price decrease will cause a decrease in total revenue.
D. None of these is true.
Answer: B
You might also like to view...
The potential problem with competitive pricing regulation of a natural monopoly is that ________.
A. P < MR B. P < ATC C. P < AVC D. P < MC
In the Solow model, if total saving exceeds depreciation,
A) gross investment is negative. B) real wages decrease. C) capital deepening stops. D) capital stock increases.
_____, uncertainty, and risk of opportunism are the three major reasons due to which U.S. Steel prefers to own its mines, enrichment facilities, and ore carriers
a. Involuntary transactions b. Transaction costs c. Nonspecificity of assets d. Trademark and credibility
Referring to Figure 18.2, the dollar is likely to depreciate if the exchange rate is either ________ or ________ pesos to the dollar.
A. 10; 11 B. 11; 12 C. 12; 13 D. 13; 14