In fair return pricing:

a. price is set equal to marginal cost.
b. the firm incurs economic losses.
c. the firm earns zero economic profit.
d. the firm earns zero accounting profit.

c

Economics

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"Happy birthday to you, happy birthday to you . . .". You get a birthday gift of $10 from Auntie Diane and you rush out to buy a T-Shirt. According to GDP accounting, the $10 is a(n)

a. consumption expenditure b. investment expenditure c. income payment d. transfer payment e. royalty

Economics

If the price elasticity of demand is elastic, then:

a. Ed < 1. b. there are likely a large number of substitute products available. c. an increase in the price will increase total revenue. d. consumers are s not very responsive to a price increase.

Economics