For this question, assume that firms experience an increase in sales. We would expect that this increase in sales will cause
A) an increase in profit per unit of capital.
B) a decrease in profit per unit of capital.
C) no change in profit per unit of capital.
D) ambiguous effects on profit per unit of capital.
E) none of the above
A
Economics
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When prices rise:
A) money supply tends to rise. B) menu costs tend to fall. C) consumers' purchasing power falls. D) money demand tends to fall.
Economics
In the inelastic portion of a monopolist's demand curve, an increase in price will:
A. Reduce output quantity, increase total revenue, and increase total cost B. Reduce output quantity, increase total revenue, and decrease total cost C. Raise output quantity, decrease total revenue, and increase total cost D. Reduce output quantity, decrease total revenue, and decrease total cost
Economics