If the demand curve facing a firm is perfectly elastic, then:
A. it can increase its total revenue by lowering the price of its product.
B. its marginal revenue will equal price.
C. its marginal revenue schedule decreases twice as fast as the demand curve.
D. its marginal revenue schedule will decrease at an increasing rate.
Answer: B
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The exchange rate can be very volatile, yet the quantity of dollars traded might not change much because
A) the Fed is constantly intervening by buying and selling dollars. B) there is only limited quantity of dollars in the foreign exchange market. C) supply of dollars and the demand for dollars often change in opposite directions. D) supply of dollars and the demand for dollars often change in the same directions. E) both the demand curve for dollars and the supply curve of dollars are horizontal.
Human beings are generally very good at accurately estimating probabilities
Indicate whether the statement is true or false