If the price elasticity of demand is less than 1, a monopoly's
A) total revenue increases when the firm lowers its price.
B) total revenue decreases when the firm lowers its price.
C) marginal revenue is undefined.
D) marginal revenue is zero.
B
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Most of the pressure for a monetary growth rule has disappeared because since 1980
A) the relationship between movements in interest rates and movements in real GDP and the price level have become much weaker. B) the relationship between movements in the money supply and movements in real GDP and the price level have become much stronger. C) the relationship between movements in the money supply and movements in real GDP and the price level have become much weaker. D) the relationship between movements in interest rates and movements in real GDP and the price level have become much stronger.
A person remodeling her house could obtain a loan from a
A) sales finance company. B) consumer finance company. C) business finance company. D) public finance company.
If the price of one good goes up and the demand of a related good goes down, the two goods are
A) complements. B) substitutes. C) inferior goods. D) normal goods.
All of the following costs are included in the calculation of accounting profit, except
a. Interest payments on borrowed funds b. Costs paid to suppliers for product ingredients c. Opportunity cost of capital d. Depreciation expenses related to investments in buildings and equipment