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1. If the price of a movie rental is $4.00, Mary will rent 5 movies in a month. If the price of a movie rental is $3.00, Mary will rent 8 movies in a month. Mary’s price elasticity of demand for movie rentals is A. 0.00. B. 0.63. C. 1.00. D. 1.59.   2. A monopolistically competitive firm will benefit by spending some of its revenues advertising the product it produces. A. True B. False

1. If the price of a movie rental is $4.00, Mary will rent 5 movies in a month. If the price of a movie rental is $3.00, Mary will rent 8 movies in a month. Mary’s price elasticity of demand for movie rentals is A. 0.00. B. 0.63. C. 1.00. D. 1.59.   2. A monopolistically competitive firm will benefit by spending some of its revenues advertising the product it produces. A. True B. False

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. If the price of a movie rental is $4.00, Mary will rent 5 movies in a month. If the price of a movie rental is $3.00, Mary will rent 8 movies in a month. Mary’s price elasticity of demand for movie rentals is

A. 0.00.
B. 0.63.
C. 1.00.
D. 1.59.
 
2. A monopolistically competitive firm will benefit by spending some of its revenues advertising the product it produces.
A. True
B. False
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