A monopoly firm can sell its fourth unit of output for a price of $250 . In order to sell more than five units, it must expect to receive a price:
a. equal to $250.
b. greater than $250.
c. less than $250.
d. equal to $340.
e. the price is impossible to calculate with the information given.
c
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In the long run, the firm ________ change the number of workers it employs and ________ change the size of its plant.
A) can; can B) can; cannot C) cannot; can D) cannot; cannot E) In order to answer the question, more information is needed about how long the long run is.
Over the last 25 years, according to the United States balance of payments
A) the current account and the capital and financial account balances tend to move in the same direction. B) the current account and the capital and financial account balances tend to move in opposite directions. C) there is no clear relationship between the current account balance and the capital and financial account balance. D) the official settlements balance fluctuates greatly from year to year.
If the income elasticity of demand for spaghetti is -1.3, then spaghetti
A) is a normal good. B) is an inferior good. C) has an elastic demand. D) is income elastic.
Suppose the income elasticity for transportation is 1.8. Which of the following is an INCORRECT statement?
A. Expenditures on transportation grow more rapidly than income grows. B. Expenditures on transportation will fall less rapidly than income falls. C. Whenever the income increases by 1 percent, the expenditure on transportation increases by 1.8 percent. D. Transportation is a normal good.