Question 9

If you are a marketing manager and in-charge of increasing the revenue of your company (firm). You found the elasticity of the product sold by the company is more than 1. What would you do to increase the revenue?

Group of answer choices

I will not change the price.

I will increase the price.

I will decrease the price.

Question 10

When I calculated the cross elasticity of Good A and Good B, I found the value of cross elasticity to be -0.8. What do I interpret about Good A and B.

Group of answer choices

Inferior

Normal

Substitute

Complementary

Question 12

If resources are perfectly substitutable, the production possibility frontier with two goods for an economy will be_____________,

Group of answer choices

Upward sloping Straight line

Convex to the Origin

Downward sloping Straight Line.

Concave to the Origin

Question 11

When I calculated the Income elasticity of Good A, I found the value of Income elasticity to be +0.8. What can I interpret?

Group of answer choices

Luxury product

Normal product and it is necessary

Difficult to say anything

Inferior product

Question 13

Economists consider both explicit and implicit cost for analyzing the cost as they take opportunity cost for measuring the cost. What is included in implicit cost?

Group of answer choices

costs that do not involve a direct money outlay (e.g. opportunity costs of the owner's own inputs used - implicit wages, implicit rent

costs that involve a direct money outlay for factors of production. For example: hiring labor.