If the price for Good A is 4$ and 9000 units are demanded, if PED is -1.5, and price changes to 6$, what is the change in quantity demanded?
6750
2250
6650
-2250
If the income elasticity of demand for a product is -1.2 a firm that produces that product would benefit from a decrease in:
The size of the middle class.
The size of the lower class.
The size of government staff.
If a firm wants to maximise revenue they should produce to the point in which:
Marginal Costs=Average Total Costs
Marginal Revenue=0
Marginal Utility = 0
In a market with perfect competition:
Demand for firms is downward sloping.
Demand for the industry is downward sloping.
Demand for the firm is perpendicular to quantity demanded.
Demand for the firm equals total revenue.
In a market economy, the price mechanism:
Helps buyers come in contact with sellers and products.
Helps buyers communicate with sellers.
Helps sellers adjust to inflation.
PED's are useful for firms because:
They help firms make decisions about employment of factors.
They inform firms about revenue.
They are irrelevant to firms.
PED's are least relevant to firms in which of the following market structures:
Monopoly
Perfect Competition
Oligopolies
If a teacher leaves a teaching post with a $50,000 anual salary and opens a doughnut shop for $5,000 that will make $145,000 a year the teacher has made:
$140,000 Economic Profit
$95,000 Normal Profit
$90,000 Economic Profit
An economic profit greater than accounting profit.
A firm will leave its industry and change it for another when:
It can't cover its ATC.
It can't afford it MC.
It's profit does not surpass it's implicit costs.
A company with a lot of latent demand might be:
Pepsi
Apple
Lamborghini
Twinnings
