At the profit-maximizing level of output, the amount by which the firm can mark up price is:
A) inversely related to the price elasticity of demand for item in question.
B) directly related to the price elasticity of demand for item in question.
C) totally unrelated to the price elasticity of demand for item in question.
D) equal to the ratio of the marginal and average costs of production.
A
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In recent decades, the fiscal tool most often chosen by policymakers has been tax reductions.
What will be an ideal response?
Under the gold standard era of 1870-1914
A) central banks tried to have sharp fluctuations in the balance of payments. B) central banks tried to avoid sharp fluctuations in the current account of the balance of payments. C) central banks tried to avoid sharp fluctuations in the trade account of the balance of payments. D) central banks tried to avoid sharp fluctuations in the capital account of the balance of payments. E) central banks tried to avoid sharp fluctuations in the balance of payments.