Concord Piano Company has experienced a sustained pattern of losses because fewer people are buying pianos for their homes. In response, the owner of Concord has reduced the number of pianos it manufactures. Which of the following is suggested by the actions of Concord?
a. Concord is reducing its marginal costs.
b. Concord is preparing to exit the market.
c. Concord has reached the shutdown point.
d. Concord is evaluating its allocative efficiency.
b. Concord is preparing to exit the market.
Economics
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The decimal equivalent of a basis point is:
A. 1.00 B. 0.01 C. 0.0001 D. 0.001
Economics
Suppose computer prices at an office supply store fall from $1,000 to $900 and as a result the quantity demanded of typewriters decreases from 40 to 20 per month. The cross-price elasticity of demand is closest to
A. 6.3. B. 5.0. C. 0.16. D. 0.2.
Economics