Which of the following is correct?
A. If demand is elastic, an increase in price will increase total revenue.
B. If demand is elastic, a decrease in price will decrease total revenue.
C. If demand is elastic, a decrease in price will increase total revenue.
D. If demand is inelastic, an increase in price will decrease total revenue.
Answer: C
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What is one major hurdle monopolies face to engage in first-degree price discrimination?
A. Finding everyone's willingness to pay is costly and difficult. B. Overcoming legal conflicts to charge each person differently is costly. C. Market research is costly and time-consuming. D. Not every person has a maximum willingness to pay for a good.
Refer to Figure 24-1. Ceteris paribus, an increase in interest rates would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Advances in production technology enable society to produce
a. less goods with more resources b. more goods with current or less resources. c. the same amount of goods utilizing more resources. d. less goods with less resources.
In the short run, when the prevailing market price falls below the average variable cost curve, a firm in perfect competition will shut down because:?
A. ?economic profit is zero. B. ?price is less than marginal revenue. C. ?marginal revenue is insufficient to pay average variable cost. D. ?other firms will enter the market seeking profits.