The shutdown rule for a firm in a perfectly competitive industry is that the firm should cease production if

Monthly expenditures for a family of 4 in 2015 averaged $1,400. In 2016, the cost of the same purchases was $1,500. If 2015 is the base year, what was the CPI in 2016?

A) 110 B) 107 C) 100 D) 93

If the price elasticity of demand is elastic, then:

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