A firm that produces a good with many substitutes will most likely find that:
A. lowering its price will increase total revenue.
B. raising its price will increase total revenue.
C. lowering its price will decrease total revenue.
D. lowering its price will not affect total revenue.
Answer: A
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Why do historians argue that there was a mixture of enterprise, partly private and partly governmental, in building our transportation system?
(a) Private individuals took the initiative and were able to extract special privileges and financial assistance from government for the purpose of enhancing their profits. (b) Political leaders, who wanted transportation improvement for reasons of local or national ambition, took the initiative and coaxed private enterprise into building the transportation system by the offer of special financial advantages. (c) The sheer size of the investment required for a transportation system was beyond the capability of private enterprise alone. (d) All of the above ideas have been used by historians to explain the mixture of enterprise in building our transportation system.
For the poorest countries, a slight improvement in economic growth will, over time, ______.
a. have no impact on the standard of living b. cause them to become richer than today’s richest countries c. have no impact on their level of wealth d. improve the standard of living