At a price of $400, consumers demand 1,500 units of a computer. When the price of the computer increases to $440, quantity demanded drops to 1,200 units. The price elasticity of demand for the computer is:
a. 2.6.
b. 2.2.
c. 2.1.
d. 2.3.
d
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In a perfectly competitive market with 100 identical firms producing at market price p1
A) the supply curve is flatter than if there were only 50 identical firms. B) the supply curve is more elastic than if there were only 50 identical firms. C) the firms have identical marginal costs. D) All of the above.
A perfectly competitive firm's marginal revenue
a. curve is a vertical line b. equals price c. rises at a constant rate d. rises at an increasing rate e. falls at a constant rate
A firm in a perfectly competitive market faces a demand curve that is
a. perfectly elastic. b. relatively elastic. c. perfectly inelastic. d. relatively inelastic.
The Federal Trade Commission is charged with:
A. supervising cartels in the United States. B. aiding small business in contract negotiations with foreign companies. C. investigating unfair and deceptive trade practices. D. approving contracts between businesses and government.