Demand is relatively elastic when the price elasticity coefficient exceeds 1.0

A firm has a fixed cost of $200 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000 . The marginal cost of producing the 100th unit of output is $700 . What is the total cost of producing 100 units?

a. $900 b. $4,200 c. $4,700 d. $4,900

Other things the same, a country could move from having a trade surplus to having a trade deficit if either

a. saving rose or domestic investment rose. b. saving rose or domestic investment fell. c. saving fell or domestic investment rose. d. saving fell or domestic investment fell.