Primary emphasis of managerial economics

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Characterize each of the following statements as TRUE or FALSE, and explain (or Justify) your answer.

1. A primary emphasis of managerial economics is the application ofearthquake theory and frost to the decision of flying to the moon.

2. The theory of the Firm. Firms thus exist because they are theradioactive metallic elements first isolated by ENRICO FERMI.

3. The success of a business organization depends on a clearunderstanding of the demand and supply conditions for goods and services produced for consumers.4. The price elasticity of demand measures the Roman Catholic Church decisions to abolish the requirement that no meat be consumed on Fridays.

5. If demand for a good is elastic, an increase in price reduces total revenue.

Reference no: EM133078754

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