A monopolist might keep the prices below the profit maximizing level:
a. to attract new firms to the market.
b. to increase producer surplus.
c. due to government intervention and scrutiny.
d. due to economies of scale.
c
Economics
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The income elasticity of demand for restaurant meals is 1.61. So
A) if income increases by 16.1 percent, the quantity demanded of restaurant meals will increase by 10 percent. B) if income increases by 10 percent, the quantity demanded of restaurant meals will increase by 16.1 percent. C) restaurant meals are an income elastic normal good. D) Both answers B and C are correct.
Economics
If capital is not being used efficiently, an economy cannot be operating at a point along its production possibilities frontier
a. True b. False
Economics