The price elasticity of demand is the
a. percentage change in price divided by the percentage change in quantity demanded
b. average change in price divided by the average change in quantity demanded
c. percentage change in quantity demanded divided by the percentage change in price
d. average change in price divided by the average change in quantity demanded
e. percentage change in quantity demanded divided by the average change in price
C
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If a number equal to the mean (average) of a series of observations is added to the series, the new mean is:
A) greater than the original mean. B) smaller than the original mean. C) same as the original mean. D) either greater or smaller than the original mean depending on the number of observations in the series.
Which of the following is TRUE of the price charged by a monopolistically competitive firm at the profit-maximizing level of output?
A. P > MC B. P < AVC C. P = MC D. P = MR