Which of the following statements is true? For a firm facing a linear downward-sloping demand curve,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Which of the following statements is true? For a firm facing a linear downward-sloping demand curve, if marginal revenue is positive, the firm will not increase total revenue by cutting price. If marginal revenue is negative, the product the firm produces must be price elastic. If a calculated price elasticity is -0.95, the firm's marginal revenue is positive, but falling. None of the above statements are true. Which of the following statements is true? For a firm facing a linear downward-sloping demand curve, if marginal revenue is positive, the firm will not increase total revenue by cutting price. If marginal revenue is negative, the product the firm produces must be price elastic. If a calculated price elasticity is -0.95, the firm's marginal revenue is positive, but falling. None of the above statements are true.
Expert Answer:
Answer rating: 100% (QA)
B is the correct answer b If marginal revenue is negative the product the firm produces must be pric... View the full answer
Posted Date:
Students also viewed these economics questions
-
Which of the following statements is true for a Qualified Tuition Plan (QTP). a. Undergraduate or graduate students must be attending full-time. b. Tax-free distributions are permitted of up to...
-
Which of the following statements is true for a foreign company registered with the U.S. SEC to list its stock on the New York Stock Exchange? a. The company must file an annual report with the SEC...
-
which of the following statements is true select one a. an employer cannot be held liable for a tort that an employee deliberately committed b. vicarious liability supports tort law's compensation...
-
The retail inventory method is used by The Bronx Company. Inventory, purchases, and sales data for 2016 are as follows: Using the retail method, calculate the Lower-of-Average-Cost or Market of the...
-
What internal resources and assets does General Motors have to help counter the external forces?
-
Herzogg Company, organized in 2011, has the following transactions relate to intangible assets . Instructions Prepare the necessary entries to record these intangibles. All costs incurred were for...
-
Recall the facts in Leonard v. Pepsico Had this been a contract, would it have been subject to the Statute of Frauds?
-
Nestl reports beginning raw materials inventory of 3,243 and ending raw materials inventory of 3,904 (both numbers in millions of Swiss francs). If Nestl purchased 16,200 (in millions of Swiss...
-
Step 2: Smooth Sailing 1. Edit the sshd_config file. [Your bash commands here]
-
James Davis owns a small Internet service provider business. Recently, customers have been complaining that they are overcharged and are not receiving timely customer service. Billing rates seem to...
-
1. Computer A has an overall CPI of 1.2 and can be run at a clock rate of 600MHz. Computer B has a CPI of 2.5 and can be run at a clock rate of 750 MHz. We have a particular program we wish to run....
-
We will learn the preparation and interpretation of a cost-volume-profit graph and a profit graph. A CVP graph highlights CVP relationships over wide ranges of activity. The anticipated profit or...
-
For each decade, briefly explore and discuss the nature of the economic challenges and problems that plagued that decade. What was the role of profit as an incentive in the US market economy? Explain...
-
Identify which of these forms are refundable: W - 2 / 1 0 9 8 / 1 0 9 8 - T / 1 0 9 9 - R 1 0 9 5 - Oh, so why?
-
Natielle borrowed $ 2 4 0 0 cash with 5 % interest Nov 1 6 th from Her grandmother. it is to be paid back in 2 4 months. Nov 3 0 what is interest expense and interest payable?
-
Jane and Kennedy started the JK partnership in June 2 0 1 8 . Each member contributed $ 1 Million ( cash ) and the partnership used the funds to purchase $ 2 Million of land. The partners have been...
-
One of the shops in hackerMall is offering discount coupons based on a puzzling porblem. There are n tags, where each tag has a value denoted by val [ [ i ] . ] . A customer needs to choose teh tags...
-
Draw a Feynman diagram for the reaction n + v p + .
-
A single-tank liquid-level system with inflow rate \(q_{i}\) as its input and liquid level \(h\) as its output is modeled as \(R A \dot{h}+g h=R q_{i}(t), h(0)=0\), where \(R, A, g=\) const. If the...
-
The mechanical system in Figure 8.37, where all parameter values are in consistent physical units, is subject to initial conditions \(x_{1}(0)=1, x_{2}(0)=1, \dot{x}_{1}(0)=-1, \dot{x}_{2}(0)=1\)....
-
Find the state vector via the formal-solution approach. \(\dot{\mathbf{x}}=\left[\begin{array}{cc}5 & 1 \\ -4 & 1\end{array} ight] \mathbf{x}+\left[\begin{array}{c}1 \\ -1\end{array} ight] u, \quad...
Study smarter with the SolutionInn App