For a profit-maximizing monopolistically competitive firm, price exceeds marginal cost in
a. the short run but not in the long run.
b. the long run but not in the short run.
c. both the short run and the long run.
d. neither the short run nor the long run.
c
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With y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight line is defined as
A) y/x. B) x/y. C) (change in y)/ (change in x). D) (change in x)/ (change in y).
Airlines generally charge travelers willing to stay over Saturday night lower fares because
a. these travelers have lower incomes, and therefore, the airlines would like to help them. b. it cost less to transport travelers willing to stay over a Saturday night. c. the demand of these travelers is elastic, and therefore, the lower fares generate more revenue. d. the demand of these travelers is inelastic, and therefore, the lower fares generate more revenue for the airlines.