The total revenue test for elasticity:
A. is equally applicable to both demand and supply.
B. does not apply to demand because price and quantity are inversely related.
C. does not apply to supply because price and total revenue always move together.
D. applies to the short-run supply curve but not to the long-run supply curve.
Answer: C
Economics
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In the above figure, a price of $1.25 and a quantity of 5 million gallons of milk per day maximizes the
A) amount of consumer surplus. B) amount of producer surplus. C) sum of consumer surplus and producer surplus. D) All of the above answers are correct.
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A firm that would experience higher average total cost by increasing production is operating with excess capacity
a. True b. False Indicate whether the statement is true or false
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