QUESTION

# ECO 561 Week 6 Quiz (6 Correct Answers)

In this paperwork of ECO 561 Week 6 Quiz (6 Correct Answers) you will find the answers on the next questions:

1. The demand curve is Qo= 100 - I OP and there Is a $1 price Increase, then the elasticity of demand at P = 2 Is Hint Calculate the quantity demanded at P = 2 and P = 3. and then apply the elasticity formula. -0.25 -0.5 -0.75 -1 2. If the absolute value of a demand elasticity is less than I, then the demand Is inelastic, and a price rise will reduce the total revenue the demand Is inelastic, and a price rise will increase the total revenue the demand Is elastic, and a price rise will reduce the total revenue the demand Is elastic, and a price rise will increase the total revenue 3. If the cross-price elasticity is negative, then the two goods are unrelated substitutes complements normal goods 4. Under perfect competition, a firm maximizes its profit by setting P = MC because P = MR. P above MC where MC = MR. P = FC. 5. A good, real-work) example for perfect competition would be lawyers gas stations Time Warner Cable groceries stores 6. A firm under monopolistic competition will earn a positive profit because it has some monopoly power a zero profit because it sets P = MC a zero profit because its P = ATC a positive profit because it sets MC = MR • @ ANSWER Tutor has posted answer for$7.79. See answer's preview

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