If a 10 percent increase in price causes a 5 percent increase in quantity supplied, then supply is
A) elastic.
B) inelastic.
C) unit elastic.
D) infinite.
B
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Two variables are uncorrelated if:
A. they move in the same direction. B. they move in the opposite direction. C. their movements tend to be unrelated. D. one is simply a multiple of the other.
The richest EU country in terms of GPD per capita is:
a. Germany b. Netherlands c. Denmark d. Luxembourg
A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 20 ? Q and a 50 percent chance it will be P = 40 ? Q. The marginal cost of the firm is MC = Q. The expected profit-maximizing price is:
A. $20. B. $10. C. $15. D. $5.
Based on all these data, the equilibrium price of the product in the market will be:
Refer to the cost table above. Now suppose that there are 600 identical firms in this industry, each with the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows:
A. $60
B. $95
C. $120
D. $75