If a monopolist produces to a point at which marginal revenue is more than marginal cost then
A) the firm should increase output.
B) the firm should reduce output.
C) the firm is maximizing profits.
D) we do not know if the firm should increase or reduce without more information.
Answer: A
Economics
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With the increased usage of cell phone services, what has happened to the price elasticity of demand for land-line telephone services?
A) The absolute value of the price elasticity coefficient has probably gone down. B) It has become more price inelastic. C) It has become more income elastic. D) It has become more price elastic.
Economics
The above figure shows the demand curve for crude oil. The demand curve has unitary price elasticity when price equals
A) $0. B) $1. C) $10. D) $20.
Economics