The relationship between marginal revenue and elasticity is
A) when demand is elastic, marginal revenue is positive and when demand is inelastic, marginal revenue is negative.
B) whenever the elasticity is positive, marginal revenue is positive.
C) whenever the elasticity is negative, marginal revenue is positive.
D) when demand is elastic, marginal revenue is negative and when demand is inelastic, marginal revenue is positive.
E) that total revenue equals zero at the quantity for which the demand is unit elastic.
A
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If the price of a product falls too much, the producer can ________________the market.
Fill in the blank(s) with the appropriate word(s).
An increase in government spending may expedite recovery from a recession in the short run, but in the long run this policy may
A) reduce investment in new capital. B) make domestic businesses less competitive in international markets as the dollar appreciates in value. C) raise interest rates and reduce consumer expenditures on automobiles and new houses. D) All of the above are correct.