The figure above shows the demand and marginal revenue curves facing Sue's Surfboards, the sole renter of surfboards on Big Wave Island. If Sue is renting 25 surfboards an hour so that the marginal revenue is negative, then Sue's Surfboards
A) can increase its profit by increasing the number of rentals.
B) must face an inelastic demand for surfboard rentals.
C) must face a unit elastic demand for surfboard rentals.
D) must face an elastic demand for surfboard rentals.
B
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Why are decision trees useful to managers who plan business strategies?
A) Decision trees can be used to increase the amount of product differentiation; this enables managers to charge higher prices for their products. B) Decision trees provide a systematic way of thinking through the implications of a strategy. C) Using a decision tree always leads to a dominant strategy. D) Decision trees explain the level of concentration in an industry.
Monetary policy in the European Monetary Union is determined by
A) the Bundesbank. B) the European Union Senate. C) the European Central Bank. D) None of the above.