If there are only two firms in an industry, the value of the Herfindahl index must be 5,000

Apple, the consumer electronics giant, on Tuesday rolled out new versions of its popular iPhone. The CEO decided to decrease the price of iPhones in an attempt to increase total revenue from iPhone sales

One of his employees, Jess, disagrees and suggests that an iPhone price increase will increase total revenue. Who is CORRECT? A) The CEO is correct if demand is price elastic. B) The CEO is correct if demand is price inelastic. C) Jess is correct if demand is price elastic. D) Jess is correct if demand is unit elastic.

For a perfectly competitive firm, which of the following is not true at profit maximization?

A) Market price is greater than marginal cost. B) Marginal revenue equals marginal cost. C) Total revenue minus total cost is maximized. D) Price equals marginal cost.