True or False? 1. When total profit is maximized, marginal profit is equal to zero. Similarly, when total revenue is maximized, marginal revenue is equal to zero. 2. In general, consumer surplus increases as the price of a good decreases. 3. At the output level where total revenue is maximized, price elasticity of demand is equal to zero. 4. At quantities corresponding to the elastic portion of the inverse demand curve, the total revenue curve slopes up.
True or False? 1. When total profit is maximized, marginal profit is equal to zero. Similarly, when total revenue is maximized, marginal revenue is equal to zero. 2. In general, consumer surplus increases as the price of a good decreases. 3. At the output level where total revenue is maximized, price elasticity of demand is equal to zero. 4. At quantities corresponding to the elastic portion of the inverse demand curve, the total revenue curve slopes up.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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![True or False?
1. When total profit is maximized, marginal profit is equal to zero. Similarly, when total revenue is
maximized, marginal revenue is equal to zero.
2. In general, consumer surplus increases as the price of a good decreases.
3. At the output level where total revenue is maximized, price elasticity of demand is equal to zero.
4. At quantities corresponding to the elastic portion of the inverse demand curve, the total revenue curve
slopes up.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F569d1721-a62a-4a50-8317-0ac9c7d1fdca%2F4a78a40d-0206-4169-9031-dcd837748c34%2Fdjiv68md_processed.jpeg&w=3840&q=75)
Transcribed Image Text:True or False?
1. When total profit is maximized, marginal profit is equal to zero. Similarly, when total revenue is
maximized, marginal revenue is equal to zero.
2. In general, consumer surplus increases as the price of a good decreases.
3. At the output level where total revenue is maximized, price elasticity of demand is equal to zero.
4. At quantities corresponding to the elastic portion of the inverse demand curve, the total revenue curve
slopes up.
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