Would a profit-maximizing firm sell at a price where demand is inelastic? Explain
No. If demand is inelastic, then marginal revenue is negative. The firm could not possibly follow the profit-maximizing rule of MR = MC.
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The real wage rate is defined as the wage rate divided by
a. the interest rate. b. the money supply. c. nominal GDP. d. the price level.
Al and Steve are both reporters at the same newspaper. Al is black and Steve is white. Al earns less than Steve. Which of the following can explain why Al earns less?
a. Although both have BA's in Journalism, Al's K-12 and college education were of a lower quality than Steve's. b. Al has greater experience. c. Al works the night shift and Steve works the day shift. d. Al writes editorials which are very popular with customers, while Steve covers the police report which fewer subscribers read.