A firm lowers the price it charges. The firm's total revenue decreases. What can we conclude about the price elasticity of demand?
A) Demand is elastic.
B) Demand is unit elastic.
C) Demand is inelastic.
D) Demand is perfectly elastic.
E) Not enough information is given to conclude anything about price elasticity of demand.
C
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To persist, a monopoly must:
a. be regulated. b. set its price to eliminate the deadweight loss. c. be a natural monopoly. d. be protected by a barrier against the entry of other firms.
Angelina Jolie's economic rent from starring in a movie is equal to the difference between:
A. her final salary and what she could earn by starring in a different movie. B. her final salary and the least she would be willing to accept to star in the movie. C. her initial salary offer and her final salary, including royalties. D. her final salary and the average salary for leading actresses.