Own-Wage Elasticities of Demand Are

question 11

Multiple Choice

Own-wage elasticities of demand are

• A) always positive.
• B) always negative.
• C) either positive or negative.
• D) positive for gross complements, negative for gross substitutes.

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Definitions:

MC

Stands for Marginal Cost, which is the cost of producing one additional unit of a good or service.

MR

Marginal Revenue, the increase in revenue that results from the sale of one additional unit of output.

ATC

Average Total Cost, a calculation used in economics to find the total cost per unit of output when all fixed and variable costs are taken into account.

Economic Profits

The profit a company makes after accounting for both its explicit and implicit costs, including opportunity costs.