If a price taker raises its price above the market price

Assignment Help Microeconomics
Reference no: EM13685340

If a price taker raises its price above the market price,

A. its total revenue will fall to zero.

B. it will lose some but not all customers

C. its total revenue will rise if it faces an inelastic demand curve.

D. its total revenue will fall by the percentage by which price is raised

Reference no: EM13685340

Questions Cloud

Labor theory of value of the classical economists supports : Describe why the labor theory of value of the classical economists supports the conflictual view of the market economy. Use examples.
What is malthus theory of effective demand : What is Malthus’ theory of effective demand? What is Malthus’ solution to the problem of general gluts? Describe how Ricardo and Malthus came to different conclusions concerning the Corn Laws.
Is economics a science : Is economics a science? Why or why not? Use detailed examples and counter-examples demonstrating your grasp of this concept.
A firm with market power charges a price : A firm with market power charges a price that is than the price charged by a perfectly competitive firm. A potential advantage of this to customers is that  lower, it allows the firm to increase its production.
If a price taker raises its price above the market price : If a price taker raises its price above the market price,
The amount of market power a firm has depends on : The amount of market power a firm has depends on
A monopolist : A Monopolist. is constrained by a downward-sloping demand curve. has no incentive to worry about the quality of its product.
Presume the utility function for a firm manager : Presume the utility function for a firm manager is U = Î + bQ, where Q is output, Î is profit, and b is a positive constant. How would the firm's output compare with what it would be if the manager's objective was to maximize profit?
Population regression model is not normal : Agree or disagree (and justify your answer): If the distribution of u in a population regression model is not normal, then the OLS estimators are not BLUE.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd