40. A firm's shutdown point is the output and price at which the firm's total revenue just equals its total variable cost. True False 41. Perfectly competitive firms will sometimes operate even though they incur an economic loss in the short run. True False 9. If goods A and B are complements, then A. the cross elasticity of demand between A and B is positive. B. their income elasticities of demand are both greater than 1. C. their income elasticities of demand are both less than 1. D. the cross elasticity of demand between A and B is negative. 12. In the nation of Transporta, the income elasticity of demand for used cars is -2.66. So when incomes in this nation increase by 10 percent A. the quantity of used cars demanded will decrease by 26.6 percent. B. used cars will be normal goods. C. the quantity of used cars demanded will increase by 26.6 percent. D. the demand curve for used cars will shift rightward. 45. Marginal revenue is equal to A. price divided by quantity sold. B. the change in total revenue divided by total output. C. total revenue divided by price. D. the change in total revenue divided by the change in quantity sold. 9. If goods A and B are complements, then A. the cross elasticity of demand between A and B is positive. B. their income elasticities of demand are both greater than 1. C. their income elasticities of demand are both less than 1. D. the cross elasticity of demand between A and B is negative.
40. A firm's shutdown point is the output and price at which the firm's total revenue just equals its total variable cost. True False 41. Perfectly competitive firms will sometimes operate even though they incur an economic loss in the short run. True False 9. If goods A and B are complements, then A. the cross elasticity of demand between A and B is positive. B. their income elasticities of demand are both greater than 1. C. their income elasticities of demand are both less than 1. D. the cross elasticity of demand between A and B is negative. 12. In the nation of Transporta, the income elasticity of demand for used cars is -2.66. So when incomes in this nation increase by 10 percent A. the quantity of used cars demanded will decrease by 26.6 percent. B. used cars will be normal goods. C. the quantity of used cars demanded will increase by 26.6 percent. D. the demand curve for used cars will shift rightward. 45. Marginal revenue is equal to A. price divided by quantity sold. B. the change in total revenue divided by total output. C. total revenue divided by price. D. the change in total revenue divided by the change in quantity sold. 9. If goods A and B are complements, then A. the cross elasticity of demand between A and B is positive. B. their income elasticities of demand are both greater than 1. C. their income elasticities of demand are both less than 1. D. the cross elasticity of demand between A and B is negative.
Chapter7: Perefect Competition
Section: Chapter Questions
Problem 8SQP
Related questions
Question
100%
40. A firm's shutdown point is the output and
True
False
41. Perfectly competitive firms will sometimes operate even though they incur an economic loss in the short run.
True
False
9. If goods A and B are complements, then
A. the cross elasticity of demand between A and B is positive.
B. their income elasticities of demand are both greater than 1.
C. their income elasticities of demand are both less than 1.
D. the cross elasticity of demand between A and B is negative.
12. In the nation of Transporta, the income elasticity of demand for used cars is -2.66. So when incomes in this nation increase by 10 percent
A. the quantity of used cars demanded will decrease by 26.6 percent.
B. used cars will be normal goods.
C. the quantity of used cars demanded will increase by 26.6 percent.
D. the demand curve for used cars will shift rightward.
45. Marginal revenue is equal to
A. price divided by quantity sold.
B. the change in total revenue divided by total output.
C. total revenue divided by price.
D. the change in total revenue divided by the change in quantity sold.
9. If goods A and B are complements, then
A. the cross elasticity of demand between A and B is positive.
B. their income elasticities of demand are both greater than 1.
C. their income elasticities of demand are both less than 1.
D. the cross elasticity of demand between A and B is negative.
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