If the profit-maximizing markup factor in a three-firm Cournot oligopoly is 2, what is the corresponding market elasticity of demand?
A. ?2/3
B. ?1/2
C. ?2.0
D. ?1.0
Answer: A
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Indicate whether the statement is true or false
If, when the price falls, total revenue increases, demand is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) None of the above answers is correct because total revenue always decreases when the price of the good falls.
A measure comparing the prices of consumer goods and services that a household typically purchases to the prices of those goods and services purchased in a base year is:
a. the GDP deflator. b. the consumer price index. c. the price level. d. inflation. e. the base measure.
What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy?
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