If a firm offers a senior citizen discount
A) the firm expects the average senior citizen to have a lower price elasticity of demand.
B) the firm expects the average senior citizen to have a higher price elasticity of demand.
C) senior citizens may be offended.
D) it may be prosecuted for discrimination.
B
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In the short run, a tax on economic profits can be shifted.
A. True B. False C. Uncertain
If goods X and Y are complements, then the cross price elasticity of demand will be
A) elastic. B) greater than zero but less than 1. C) negative. D) positive.
The MRP of capital is defined as the
a. output produced by employing one more dollar of loanable funds b. total cost attributed to employing one more unit of physical equipment c. contribution of capital to the production of the good d. change in capital required to produce one more unit of output e. change in total revenue that results from adding an additional dollar of loanable funds to production
An advance in technology commonly refers to the ability to produce
A) the same output with a smaller quantity of resources. B) more output with a fixed quantity of resources. C) more output with a greater quantity of resources. D) both a and b E) both b and c