When the price of a Caesar salad is $5.00, the demand for Caesar salads is elastic, and when the price is $4.00, the demand is inelastic. If Mike's Roadside Restaurant cuts the price from $5.00 to $4.00, its total revenue from Caesar salads ________
A) will increase
B) will decrease
C) will remain the same
D) might increase, decrease, or remain the same
D
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A monopolistic ally competitive firm is operating at a short-run level of output where price is $21, average total cost is $15, marginal cost is $13, and marginal revenue is $13. In the short run this firm should:
A. Reduce product price B. Increase the level of output C. Decrease the level of output D. Make no change in the level of output
Choice architecture is the:
A. the internal mental framework people use in order to make all their decisions. B. choices that force utility-maximizing decisions for individuals. C. political framework under which policy is made. D. organization of the context and process in which people make decisions.