The suggestion that a seller will try to set price based on "what the market will bear" is explicit recognition of the constraint imposed by:
A) the firm's marginal cost of production.
B) the price elasticity of demand for that item.
C) the firm's competitors.
D) the need for most firms to earn positive economic profits over time if they are to remain in business.
B
Economics
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How does a rise in the foreign exchange rate affect aggregate demand in the United States? Explain your answer
What will be an ideal response?
Economics
The M1 money supply is defined to be the sum of currency, traveler's checks, and:
A. checkable deposits. B. Treasury bonds. C. savings accounts. D. large time deposits.
Economics