The less elastic is the demand for a firm's product, the greater is that firm's market power
Indicate whether the statement is true or false
True . The less elastic the demand for the firm's product, the greater is the firm's ability to set price over marginal cost.
Economics
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Which of the following will cause the aggregate demand curve to shift to the right?
A) An increase in the price level B) An increase in the interest rate C) An increase in money demand D) An increase in investment expenditures
Economics
Your friend is thinking of opening a video store. She estimates it would cost $500,000 a year to rent the store and buy video stock. She is planning to quit her $50,000 a year job as an accountant to run the store. Her opportunity cost of opening the store is
a. $500,000 b. $550,000 c. $50,000 d. $450,000 e. $60,000
Economics