1.When Gillette introduced a new and improved product it effectively differentiated its product from the competition,...
1.When Gillette introduced a new and improved product it effectively differentiated its product from the competition, making the demand for its product relatively less price sensitive. True or False?
2.The long-run price elasticity of demand for a commodity is generally greater than the short-run price elasticity of demand for the commodity.
True or false?
Homework Answers
1. True
(With differentiation, product become price inelastic.)
2. True
(In long run, demand is more elastic than in the short run.)
Add Answer to:
1.When Gillette introduced a new and improved product it
effectively differentiated its product from the competition,...
A good is considered normal when its income elasticity of demand is ___ and inferior when the...
A good is considered normal when its income elasticity of demand is ___ and inferior when the its income elasticity of demand is ___. Greater than zero, less than zero. Less than zero, greater than zero. Greater than one, less than one. Less than one, greater than one. If an increase in prices decreases total revenue in the short run, what will it do to total revenue in the long run? It will decrease total revenue in the long run. It...
Demand is more elastic: a. in the short run than in the long run. b. for...
Demand is more elastic: a. in the short run than in the long run. b. for goods with many substitutes than for goods with only a few. c. for goods with no substitutes. d. for necessities than for luxuries. e. for broadly defined goods than for narrowly defined ones. All other things constant, if a _____ proportion of a consumer’s budget is spent on a good, the demand for the good will be more _____ and a consumer will purchase...
When the price of a product rises, the increase in quantity supplied will generally be greater...
When the price of a product rises, the increase in quantity supplied will generally be greater in the long run than the short run because consumers are less resistant to higher prices in the long run than in the short run because they have fewer options in the long: a. run. consumer income will expand in the long run, causing resource prices to rise, which will induce producers to increase output. C. over time, new fims will enter the industry...
A perfectly competitive firm will produce: O only when it earns profits in the short run....
A perfectly competitive firm will produce: O only when it earns profits in the short run. O mostly in the long run and only if price is greater than AFC. O whenever it can O with a loss in the short run if its price is greater than AVC but less than ATC. An artificially scarce good is similar to a public good in that it is , but it is also similar to a private good in that it...
33 Price elasticity of demand is generally: out of Select one: O a. greater in the...
33 Price elasticity of demand is generally: out of Select one: O a. greater in the short run than in the long run. b. the same in both the short run and the long run. c. greater in the long run than in the short run. d. greater for "necessities" than it is for "luxuries." 34 Which of the following statements is true about the advantages gained through the division of labour? Select one: out of a. It was first...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
Could someone take note for me from this paragraph with explantation . Thank you in advance...
Could someone take note for me from this paragraph with
explantation . Thank you in advance
-80 PART 1 MICII Analysis a 2006 en less price por search The Influence of Price Elasticity on Managerial Decision Making Price elasticity of demand is an extremely important concept for a firm becs tells managers what will happen to revenues if the price of a product chandelt can also help firms develop a pricing strategy that will maximize their profits The demand for...
44. Under both perfect competition and monopoly, a firm: a. is a price taker. b. is a price maker. c will shut down...
44. Under both perfect competition and monopoly, a firm: a. is a price taker. b. is a price maker. c will shut down in the short-run if price falls short of average total cost d. always earns a pure economic profit. e.) sets marginal cost equal to marginal revenue. 45. True/False. In the long run, all inputs AND costs are variable. a. True b. False 46. True/False. Marginal cost is calculated by dividing the change in total cost by the...
please explain answers. unsure on #17 & #20 16 of 25 The first unit of an...
please explain answers. unsure on #17 &
#20
16 of 25 The first unit of an information product is produced at a high fixed cost Producing additional units entails relatively low total costs marginal and average variable cost. external cost. social cost 17 of 25 Long-run equilibrium is characterized by zero profits in e monopolistic competition only e perfect competition only 9 both perfect competition and monopolistic competition market structures in which there are barriers to entry. 20 of 25...
17. Market power a. is the capability to increase price without losing all sales. b. exists...
17. Market power a. is the capability to increase price without losing all sales. b. exists whenever the firm faces a downward-sloping demand curve. c. is greater the less elastic is demand. d. is smaller the more positive is the cross-price elasticity of demand. e. all of the above. 18. A monopoly is maximizing short-run profit at a point on demand where demand elasticity is -3. What is the Lerner index? a. 3 b. 1/3 c. 33.3 d. -3/4 19....
When the price of a product rises, the increase in quantity supplied will generally be greater in the long run than the short run because consumers are less resistant to higher prices in the long run than in the short run because they have fewer options in the long: a. run. consumer income will expand in the long run, causing resource prices to rise, which will induce producers to increase output. C. over time, new fims will enter the industry...
A perfectly competitive firm will produce: O only when it earns profits in the short run. O mostly in the long run and only if price is greater than AFC. O whenever it can O with a loss in the short run if its price is greater than AVC but less than ATC. An artificially scarce good is similar to a public good in that it is , but it is also similar to a private good in that it...
33 Price elasticity of demand is generally: out of Select one: O a. greater in the short run than in the long run. b. the same in both the short run and the long run. c. greater in the long run than in the short run. d. greater for "necessities" than it is for "luxuries." 34 Which of the following statements is true about the advantages gained through the division of labour? Select one: out of a. It was first...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
Could someone take note for me from this paragraph with
explantation . Thank you in advance
-80 PART 1 MICII Analysis a 2006 en less price por search The Influence of Price Elasticity on Managerial Decision Making Price elasticity of demand is an extremely important concept for a firm becs tells managers what will happen to revenues if the price of a product chandelt can also help firms develop a pricing strategy that will maximize their profits The demand for...
44. Under both perfect competition and monopoly, a firm: a. is a price taker. b. is a price maker. c will shut down in the short-run if price falls short of average total cost d. always earns a pure economic profit. e.) sets marginal cost equal to marginal revenue. 45. True/False. In the long run, all inputs AND costs are variable. a. True b. False 46. True/False. Marginal cost is calculated by dividing the change in total cost by the...
please explain answers. unsure on #17 &
#20
16 of 25 The first unit of an information product is produced at a high fixed cost Producing additional units entails relatively low total costs marginal and average variable cost. external cost. social cost 17 of 25 Long-run equilibrium is characterized by zero profits in e monopolistic competition only e perfect competition only 9 both perfect competition and monopolistic competition market structures in which there are barriers to entry. 20 of 25...
17. Market power a. is the capability to increase price without losing all sales. b. exists whenever the firm faces a downward-sloping demand curve. c. is greater the less elastic is demand. d. is smaller the more positive is the cross-price elasticity of demand. e. all of the above. 18. A monopoly is maximizing short-run profit at a point on demand where demand elasticity is -3. What is the Lerner index? a. 3 b. 1/3 c. 33.3 d. -3/4 19....
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