Gross revenue minus explicit costs equals
A) accounting profit. B) implicit cost. C) opportunity cost. D) economic profit.
A
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The official measure of the deficit
A) always underestimates the correct measure of the deficit when inflation is positive. B) differs from the correct measure by the inflation rate times taxes. C) depends on the nominal interest rate. D) depends on the real interest rate. E) none of the above
Suppose an airline determines that its customers traveling for business have inelastic demand and its customers traveling for vacations have an elastic demand. If the airline's objective is to increase total revenue, it should
a. increase the price charged to vacationers and decrease the price charged to business travelers. b. decrease the price charged to vacationers and increase the price charged to business travelers. c. decrease the price to both groups of customers. d. increase the price for both groups of customers.