Refer to the graph below. If the firm is producing at Q1, the area BADE represents:
A. Total costs
B. Total variable costs
C. Total fixed costs
D. Average variable costs
C. Total fixed costs
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Twenty-four months after a 1 percentage point increase in the short-term (Treasury bill) interest rate, real GDP have fallen by about ________ in 1961-75, by ________ during 1976-1990, and by ________ during 1991-2007 period. 88-2004
A) 2%, 1%, 3% B) 0.1%, 2%, 1.8% C) 1.8%, 0.9%, 0.2% D) 0.2%, 0.1%, 0.9%
If two identifiable markets differ with respect to their price elasticity of demand and resale is impossible, a firm with market power will
A) set a higher price in the market that is more price elastic. B) set a lower price in the market that is more price elastic. C) set price so as to equate the elasticity of demand across markets. D) set price equal to marginal cost in both markets.